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Differences in Legal Structures; Which Structure is Right for You?

by CharlotteW, Former Moderator

  • Created: April 28, 2009, 8:51 am
  • Updated: February 9, 2011, 4:18 pm
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2 comments

Starting a business involves many critical decisions before hiring your first employee or planning a Grand Opening event. After reading articles and talking with other business owners you may be aware of important decisions to consider for your business like how to finance, which licenses and permits apply to you, and how do you plan to comply with labor and employment laws. These issues are all very important but there is another decision you must make. You must decide whether your new business will be a sole proprietorship, partnership, corporation, or limited liability company (LLC). Examples of these expenses and added costs include tax-filing requirements, complexity of business legal documents with appropriate agencies, and federal, state, and local laws dictating other necessary actions of the business.<span> </span>Consult with an attorney for specific guidelines and estimates for the administrative work required in your state

Message Edited by CharlotteW on 09:11 AM

Message Edited by CharlotteW on 09:12 AM

Message Edited by CharlotteW on 04-30-2009 02:20 PM

Tags: Community Blogs, Business Law Advisor

Comments

tylergheller | Window Shopper | 8/21/2009 - 12:33 pm

Excellent breakdown guys. I know in the past I always struggled with the differences between different business structures.. Tyler Gheller Los Angeles Lawyers &amp; Attorneys Message Edited by NicoleD on 09-30-2009 12:13 PM

csnova | Window Shopper | 5/6/2009 - 5:03 pm

I have a question regarding to this article: if a wife and a husband form a LLC elected S corp as taxation purpose with husband own 98% share and wife own 2% share, can the LLC apply the full fringe benefit deduction for the wife (like C corp could) since she owns only 2% share without being taged a Personal Service Corp (PSC) which has to pay a flat 35% income tax?