Starting up a business can be a harrowing and dizzying process. Determining whether you should set-up a Corporation, LLC, LLP, Sole Proprietorship, PC, Partnership or SCorp is a decision that should not be taken lightly. Each type of business entity brings with it certain levels of liability and tax consequences and it is very important that you know which structure is best for you. Each business entity type requires specific paperwork to be filed with the state. While some of the filings may be simple there are some that can be not only confusing but very time intensive and cumbersome.
Some things to consider:
Are you opening a business by yourself or with another person or several people? Are you borrowing money or putting up your own money? Will you have employees? What insurance will your business need? Will you need separate bank accounts and in which State should your accounts be located?
These are important questions that need to be answered in order to determine which business structure is best for you.
Don’t make the one most important decision of your life by yourself. Consult with a professional so that you start this chapter on the right path.