Form Example Details
TopicSample background check release form template.
PostedTue, Jan 14th 2020 17:54 PM
For many small businesses, the best initial choice is either a sole proprietorship or, if more than one owner is involved, a partnership. Either of these structures makes good sense in a business where personal liability isn`t a big worry -- for example, a small service business in which you are unlikely to be sued and for which you won`t be borrowing much money. Sole proprietorships and partnerships are relatively simple and inexpensive to establish and maintain.
Forming and operating a corporation is more complicated and costly, but it`s worth it for some small businesses. The main feature of LLCs and corporations that attracts small businesses is the limit they provide on their owners` personal liability for business debts and court judgments against the business. Another factor might be income taxes: You can set up an LLC or a corporation in a way that lets you enjoy more favorable tax rates. In certain circumstances, your business may be able to stash away earnings at a relatively low tax rate. In addition, an LLC or corporation may be able to provide a range of fringe benefits to employees (including the owners) and deduct the cost as a business expense.