Tuesday, March 23, 2010

Choose a structure for your business

Selecting a Business Structure

Hello, readers of New York-Small Business Opportunities. Today i want to help you select a structure for your business  . This is one of the first decisions you have to do to open a business. Selecting a structure for your business is not easy. I recommend that you contact your accountant and your lawyer . They will help you choose the right structure for your business.

How to select a business structure

When selecting a business structure there are many things that need to be taken into account. For example:


  • The level of structure you are willing to deal with.

  • The business' vulnerability to lawsuits.

  • Tax implications of the different ownership structures.

  • Expected profit (or loss) of the business.

  • Whether or not you need to reinvest earnings into the business.

  • Your need for access to cash out of the business for yourself.

What structures are available ?

There several business structures . For example:

  • Sole propiertoship-This firms are owned by one individual
  • Partnerships-Two or more people own a business.
  • Corporations-The owners are the share holders
  • S Corporations-A tax election only; this election enables the shareholder to treat the earnings and profits as distributions and have them pass through directly to their personal tax return
  • Limited Liability Company-It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership
For more information please visit
http://www.sba.gov/smallbusinessplanner/start/chooseastructure/START_FORMS_OWNERSHIP.html

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