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The Importance of Business Structures. Which type of entity should you have?

Posted by Dairel Denton Posted on Nov 04 2014
When starting your new business one of the first questions that may be on your mind is “What entity should I choose?” There are several structures available, such as:
- Sole Proprietorship
- Partnership
- Corporation
- S Corporation
- Limited Liability Company (LLC)
You should be aware not only will this decision have an impact on you and your business, but it will also have a significant impact on how much you pay in taxes.  Additionally, the amount of required paperwork for filing your taxes and other administrative tasks will also depend on which entity you select.  You should know there are five (5) main focuses a business owner should be aware of when deciding the best structure for them:
1) tax implications
2) cost of formation
3) legal liability
4) future needs
5) flexibility
To ensure you make the correct decision be sure to talk with your Certified Public Accountant before moving forward.  If you do not have a trusted CPA then take the time to find one.  Interview them first, make certain they are in expert in helping small business and talk with them so they understand your end goal.  If you have any questions about which business structure is best for you, please give me a call at 573-686-3053.  I have years of experience in assisting small business owners and would be happy to sit down with you.