Is it better to set up an online business as a partnership or a LLC corporation? Right now it is just me and my brother that are in the business. Do there have to be so many employees if it is a corporation? Which is the best for deducting expenses or are they the same on that?
Sorry for all the questions, but that is how you learn haha :)
It's best to setup an S-Corp or LLC depending on your business strategies. An LLC requires some things that an S-Corp does not. But doing either will help you not only with tax purposes but to better help organize and run your business as a whole.
Regardless of the business structure you select, you should highly consider getting insurance to protect your business.
Far too many people think forming an LLC or Corportation (C or S) will protect the owners, officers, board of directors, or sharesholders from litigation. Civil lawsuits first go after the LLC or Corporation and then after other parties if the LLC or Corporation fails to cover the awards to the apellant.
Check with your local commercial insurance agent for the level of protects your type of business may need.
I hope this help you and others.
Kind Regards,
Lee Roberts
Ecommerce Website Design
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This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcom....
VIRTUAL SMALL BUSINESS ... is distinguished by IRS
... click the following link ... then search for virtual ... then find the information on virtual small businesses, as explaned by IRS
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=virtual+company
COMPARE
You may also want to review the distinctions and benefits of several types of tax corporate structures: (1) for profilt (2) not for profit (3) sole proprietor, partnership, corporation
---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
VIRTUAL SMALL BUSINESS ... is distinguished by IRS
... click the following link ... then search for virtual ... then find the information on virtual small businesses, as explaned by IRS
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=virtual+company
COMPARE
You may also want to review the distinctions and benefits of several types of tax corporate structures: (1) for profilt (2) not for profit (3) sole proprietor, partnership, corporation
---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
If your online business is still new, maybe you can start on a partnership type. Start small and make it grow..
I would suggest LLC since it can save you from some taxes. It also protect you and your partner personal property when something bad happen, they wont be able to make you personally liable when sued over. Since LLC is seen as a separate entity by the law, they would have to take this steps against your LLC.
todd_b85 | Window Shopper | 9/7/2011 - 4:22 pm
klaucs | Window Shopper | 7/4/2011 - 4:11 pm
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LRoberts | Window Shopper | 2/4/2011 - 5:21 pm
NicoleD | Former Moderator | 11/12/2010 - 10:23 am
jbeidle | Contributor | 11/10/2010 - 7:29 am
sandeep | Window Shopper | 6/29/2011 - 5:06 am
GBIntel | Creator | 11/8/2010 - 5:55 am
searchoptmedia | Performer | 10/27/2011 - 10:29 pm
jthorf | Contributor | 11/6/2010 - 10:09 pm
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