Are you in the process of starting a business? If so, it’s safe to assume that you have many questions to answer. Furthermore, you may be faced with a variety of challenges as you get up and running.
Before you open your doors, it’s imperative to choose the right business structure. While this sounds like a simple decision, there are a variety of options to consider. If you don’t make the right selection, it could work against you in the future.
The most common types of business structure include:
— Sole proprietorship
— Limited Liability Company (LLC)
— S Corporation
As you can see, there is no lack of options when choosing a business structure. Each one has its own set of legal and tax implications, so it’s imperative to consider which one will work best for your company now and in the future.
A sole proprietorship, for instance, is the most basic type of structure. This is often the best solution for a one-person company.
An LLC is another common choice, as this provides a variety of tax benefits as well as a high level of protection in regards to liability.
The only way to choose the right business structure is to compare your options as you focus on the pros and cons. As long as you make the right choice at the right time, you can move forward with confidence.
If at any point you’re confused, take a step back and search for professional help. This is better than moving forward in Florida and making a costly mistake.
Source: SBA, “Choose Your Business Structure,” accessed Sep. 21, 2016