Choosing the Right Business Structure
Starting your own business or becoming self-employed is an exciting time in anyone’s life. You’re getting a chance to live your dream of working for yourself in a field that you love and not having a boss telling you what to do and when. Working for yourself also means not having a company that automatically takes Social Security taxes out of your paycheck or protects you from lawsuits.
The business structure that you set up when forming your business is important because it can shield you from some personal liability and change the way you pay taxes.
There are four main types of business structures allowed in the United States:
• Sole proprietorships
• Partnerships
• Limited liability companies
• Corporations
Each business model has pros and cons, and there are reasons why you might want to choose one over the others when you start your business, or change from one to another as your business grows.
This ebook will guide you through the process of choosing the legal structure that is right for your business. In particular, it will discuss when businesses might want to change from a sole proprietorship – the most basic legal structure – to a corporation or limited liability company and how to go about doing that.
Case studies for the different kinds of business models will be provided to give you an idea of how different people chose the legal structure of their business. Through these examples you will discover the perfect legal structure for your business and how to go about getting your business set up.
