When you decide to start your own business, or become an entrepreneur, you need to be aware of the legal liability implications of doing so. There are potentially greater legal liabilities you are subjected to as a small business owner that you did not have to worry about before you owned a business.
Business taxes are another issue you need to consider when you are a small business owner. Since business taxes are handled much differently than your personal taxes, you need to have a handle on your business tax situation. Any thing related to your business taxes is best run by an accountant, so make sure you have one.
Sole proprietorship is always one way you can run your business, but it usually is not the best option for most people. You do not get any of the business tax benefits, or personal liability protection when you are a sole proprietor. Discussing what is best for your situation is a great subject to discuss with a professional.
So what should the average small business owner do? Smart small business owners create a business structure to shield themselves personally from liability and to take advantage of small business tax laws.
A very common business entity, and most likely the best choice for most small business owners, is an LLC. A limited liability company (LLC) gives you personal liability protection, assuming it is set up correctly, and you totally separate your business and personal activities. Also with an LLC, you can choose how you should be taxed.
Forming an LLC is very easy, with one of the more expensive options being paying a lawyer to form your LLC. A much less expensive option is to use an online LLC formation service, which lets you get a properly set up LLC with prices starting at under $200.
While there are other business structures you could use for your business, an LLC is one of the simplest and works well for most entrepreneurs. An LLC strikes the right balance between ease of use and personal liability protections, so it is generally a great choice.
Talk to a professional to see if LLC incorporation is the right structure for your particular situation. At the very least, you need to take some action to make sure that your company is separated from you, so you limit your potential liabilities and take advantage of the tax benefits afforded to small businesses.
Business taxes are another issue you need to consider when you are a small business owner. Since business taxes are handled much differently than your personal taxes, you need to have a handle on your business tax situation. Any thing related to your business taxes is best run by an accountant, so make sure you have one.
Sole proprietorship is always one way you can run your business, but it usually is not the best option for most people. You do not get any of the business tax benefits, or personal liability protection when you are a sole proprietor. Discussing what is best for your situation is a great subject to discuss with a professional.
So what should the average small business owner do? Smart small business owners create a business structure to shield themselves personally from liability and to take advantage of small business tax laws.
A very common business entity, and most likely the best choice for most small business owners, is an LLC. A limited liability company (LLC) gives you personal liability protection, assuming it is set up correctly, and you totally separate your business and personal activities. Also with an LLC, you can choose how you should be taxed.
Forming an LLC is very easy, with one of the more expensive options being paying a lawyer to form your LLC. A much less expensive option is to use an online LLC formation service, which lets you get a properly set up LLC with prices starting at under $200.
While there are other business structures you could use for your business, an LLC is one of the simplest and works well for most entrepreneurs. An LLC strikes the right balance between ease of use and personal liability protections, so it is generally a great choice.
Talk to a professional to see if LLC incorporation is the right structure for your particular situation. At the very least, you need to take some action to make sure that your company is separated from you, so you limit your potential liabilities and take advantage of the tax benefits afforded to small businesses.
About the Author:
Caressa Waechter supports small business and feels strongly that most entrepreneurs can benefit from incorporation LLC for their business. Find more about LLC formation by visiting her website.
Aucun commentaire:
Enregistrer un commentaire