May 14 2016
Now that you have already decided to start your own business, prepare your business plan, funds and become an entrepreneur, the next step you need to do is to decide the business structure you are going to use.
The business structure you are going to choose will decide what kind of taxes and how much in taxes you will pay. It will also determine how your business will be registered, and how many individuals will be part of the business’ ownership group.
Choosing the right business structure is just as important as choosing the right product to sell, as this will play a huge part in the administrative side of your business. What are your options? There are several kinds of business structures but these have been categorized into two: the corporate and the non-corporate. The corporate structures are typically the different kinds of corporations which include the Business Corporation, also known as the C-corporation. Also among the corporate structures are the S-corporation and the Close Corporation.
On the other hand, non-corporate structures include Sole proprietorship, the different kinds of Partnerships (General Partnerships, Limited Liability Partnerships, Limited Partnerships) and the Limited Liability Company.
Each business structure has advantages and disadvantages. To learn more about the pros and cons of each structure, read this: https://www.fundera.com/blog/2014/11/14/business-entity
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