Selecting a Legal Entity
One of the first things you will need to decide is what kind of legal entity you are going to use to conduct your activities. The decision depends on:
- Who else is involved
- The amount of personal risk you are willing to bear
- State and federal tax considerations
- How you intend to finance the business
- Legal restrictions
- Sole proprietorship
- C Corporation
- S Corporation
- Limited Liability Company (LLC)
Each type of entity has its benefits and drawbacks, and each is treated differently for legal and tax purposes.
Insight Accounting Solutions is here to help walk you through the complicated issues surrounding making a wise choice, enabling you to start your new business on the right path.