Form a Limited Liability Company
If you have your own small business, or are thinking of beginning one, you need to consider the legal ramifications of doing so. There are possibly greater legal liabilities you are exposed to as an entrepreneur that you did not have to worry about before you owned a business.
Another thing that you have to consider when you are your own boss is taxes. Business taxes are handled in a different way than personal taxes, so you have to know of what is happening with your business taxes. Of course, this is where an accountant can come in really handy.
Operating as a sole proprietor is always an option, though it is not usually the best choice. There are many liability and tax reasons why you should not be a sole proprietor. Getting professional advice about these issues is recommended.
So what should the average entrepreneur do? Smart small business owners form some sort of business entity to shield themselves from personal liability and to take advantage of small business tax laws.
A common business structure, and most likely the best solution for most small business owners, is to think about creating a LLC. A limited liability company (LLC) gives you liability protection personally, assuming it is set up correctly and you completely separate your business and personal finances. Also with an LLC, you have the ability to choose how taxes are handled.
Setting up an LLC is very simple. The more expensive option is paying a lawyer to set up your LLC. Another option is to use a reputable Internet business creation services for LLC corporations. There is no excuse to not form a limited liability company with prices starting at $115.
Consult with a professional to see if limited liability company LLC is the right choice for your particular situation. It is vital to make sure that you have your business set up correctly to limit personal liability and to take advantage of the tax benefits afforded to companies.
posted by e-borneo.com @ 2:56 pm
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