Ready to start your own business?
You are excited? Yes! But not sure what form of business entity will work best for you?
Here are few factors to consider:
- How difficult it is to form a business entity?
- Do you anticipate any financing or credit needs for your new business?
- Do you need flexibility to allocate profits and losses?
- Are you trying to limit personal liability?
- Do you want it to make easy for owners to sell their ownership interests?
- How do you want to treat profits and losses from a tax viewpoint?
There are normally 4 main types of businesses people use. They are:
- Sole Proprietorship
- General Partnership
- Limited Partnership
- C Corporation
- S Corporation
- Limited Liability Company (LLC)
- Single member LLC
- Multiple-Member LLC
Of course, there are many other business entity types like Business Trusts or Limited Liability Partnerships, but they are not frequently used.
To decide which form of entity will work for you, we need to consider many different factors, such as, how many people would own the business, whether owners of the business are US residents or not and many others. IBA Tax Group professionals can sit with you and discuss advantages and disadvantages of all entities in order to decide on the best outcome for your new business.
Our New Business Formation Services include:
- Filing registration documents with the State
- Obtain a Federal Employer Identification Number (FEIN or Federal Tax ID)
- Registered Agent Services
Opening your own business is exciting and thrilling. Let us help you making the first step and form your new business entity. Call us today!