Should My Business Incorporate?
Small business owners often find it confusing when trying to determine how they should structure their business.
LLC, partnerships, sole proprietorship, incorporation, S corp. are all terms that may apply to a for profit company. Each has its own advantages and disadvantages.
In fact, I sometimes speak with clients who think they are operating as one type of a business when, in reality, they are registered with the secretary of states as a completely different type of organization.
The purpose of this article is not to tell you the right and best way to organize your business. I just want to stress that it is vitally important to carefully consider the alternatives before making a final decision.
The type of business entity you choose will affect your accounting and tax costs, estate planning, even your insurance. Certain types of organizations may protect you from personal liability for some negligent business actions or contracts. Other types do not give you personal liability protection.
Our office has the background, experience, and ability to help you choose the best type of business option for your particular situation. We are glad to provide you guidance for this very important decision.