When you embark on starting your own business, it can seem like the sky is the limit. For many, this is an absolute dream come true. There are so many possibilities in store for your budding business. Business cards to make, websites to design, goods to produce and services to provide. However, before you get too deep into things, you need to decide how you want to structure your business. This can be less fun. Mark Dicus & Company is here to talk about a few different options available to you as far as business structure goes.
Different Ways to Structure Your Business
There is not one size fits all as far as a business structure goes, much like there are not any two businesses that are alike. Here are some different options as far as business structuring that you will have to choose from depending on what works best for you.
– Sole Proprietorship: If you have a business that is unincorporated and plan on filing the profits of that business on your personal income tax return, you. Might want to structure your business using the sole proprietorship model. This is the simplest structure available to you and a great starting point.
– Partnership: Sometimes, even though you have an unincorporated business, you might have a business partner. This means that the profits are going to be divided up between you all. There are a few different types of partnerships to choose from including: general partnerships, limited liability partnerships, limited partnerships, and limited liability limited partnerships.
– Limited Liability Company (LLC): When you choose an LLC, you are limiting the personal liability of your business but are also allowing the profits to be taxed on a member level or corporate level.
– S Corporation: This business model means that your company has one stock and less than 100 stockholders. None of your stockholders can be another for-profit business or a person without a green card. The profits will be taxed on the shareholder’s tax returns.
– C Corporation: The profits from a C corporation will be taxes once on a business level and then again on a personal level. This happens after the earnings are distributed amongst the shareholders. These corporations can have multiple classes of stock and there is no limit on the shareholders either.
Switching Business Structures
While switching business structures is fine, it is ideal to decide early on what structure you’re interested in and not changing it for the first few years. It can be pricey and complicated to switch often. Not to mention, it can be a big distraction from running your business.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are trying to decide how to best structure your business, you can turn to Mark Dicus & Company to help offer our years of experience and advice. We will help your business thrive. Call us today!