Choosing the Right Business Structure for You
So, you’re considering starting your own business. You’ve got the idea or the product. You’ve got the motivation. You’re two steps ahead of the game. Now, all you need is the right paperwork to make it all legal. That means figuring out how you’d like to structure your business. For those people who need some assistance with business structure planning in Union City, NJ, we’ve got you covered.
When you’ve being thinking about the kind of entity you’d like your business to be, you’ll have a small variety of options:
- Sole proprietorship: For those people who love complete control, here’s your option. The most common type of business, a sole proprietorship is easy to form and run. Of course, there is no liability protection, either.
- Partnership: Essentially a sole proprietorship with two people, partnerships are subject to certain tax benefits. That said, they also do not shield the owners from risk.
- Corporation: A corporation is an entity separate from the people who founded it. This prevents the owner from being held responsible for business losses in addition to providing several other incentives. There are several classes of corporation that your financial professional can fill you in on.
- LLC: If you’re interested in a hybrid form of company, consider a limited liability corporation. It operates something like a partnership, only with a protective layer of security.
Now that you have an idea of the basic kinds of corporate entities, here are some questions to ask yourself as you begin business structure planning in Union City, NJ.
How much risk do you want to take?
One of the primary benefits of setting up a separate entity like an LLC is the protection it affords the business owner and individual investors. When you conduct business through an LLC, you are not held personally responsible for any substantial losses the company sustains. This could offer a lot of solace in the event that your corporation loses money at some point.
What is your tax status?
If your sole proprietorship becomes a tax concern, it could be worth converting your operation to a tax-beneficial structure like an S corporation. When handled by a qualified financial professional, incorporating can shield owners from a wide variety of taxes. You could dramatically improve your bottom line by merely taking the time to fill out a little bit more paperwork.
Your corporate education
More than anything, you need a talented financial professional on your team who can provide valuable business registration tips in Union City, NJ. That means scheduling an appointment with the team at Kedean’s Generation. Our family owned and operated business has the experience to help turn your passion into the next great business. All you need is the right paperwork and financial assistance to get the ball rolling.
In addition to general accounting, we also provide first-rate tax prep as well as a huge array of other financial services. Pick up the phone and give us a call to schedule your appointment. We look forward to helping you succeed!
Categorised in: Starting a Business