Incorporating Your Business
When you’re starting a business, one of the first decisions you have to make is the type of business you want to create. A sole proprietorship? A corporation? A limited liability company? This decision is important, because the type of business you create determines the types of applications you’ll need to submit. You should also research liability implications for personal investments you make into your business, as well as the taxes you will need to pay. It’s important to understand each business type and select the one that is best suited for your situation and objectives. Keep in mind that you may need to contact several federal agencies, as well as your state business entity registration office.
Here is a list of the most common ways to structure a business.
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A cooperative is a business or organization that is owned by and operated for the benefit of those using its services. Profits and earnings that are generated by the cooperative are distributed among the members, also known as ...
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A corporation is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts incurred by the business. A ...
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A limited liability company is a hybrid-type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. The “owners” of an ...
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A partnership is a single business where two or more people share ownership. When two or more people decide to join together to carry on a trade or business, their relationship is considered to be a partnership. In general, ...
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An S Corporation or S Corp is a special type of corporation created through an IRS tax election. An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be ...
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