Selecting the Right Business Structure

To get the most out of your small business, choose the right structure. Selecting the right type of company for your new business helps maximize your chances of financial and operational success. Common business structures include:

C Corporations

• Independent legal and tax structures separate from their owners
• Help separate your personal assets from your business debts
• No limit to the number of shareholders
• Taxed on corporate profits and shareholder dividends
• Must hold annual meetings and record meeting minutes

Limited Liability Companies (LLCs)

• Independent legal structures separate from their owners
• Help separate your personal assets from your business debts
• Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners)
• No limit to the number of owners
• Not required to hold annual meetings or record minutes
• Governed by operating agreements

Partnerships

• Partners remain personally liable for lawsuits filed against the business
• Usually no state filing required to form a partnership
• Easy to form and operate
• Owners report their share of profit and loss in the company on their personal tax returns

S Corporations

• Independent legal and tax structures separate from their owners
• Help separate your personal assets from your business debts
• Owners report their share of profit and loss in the company on their personal tax returns
• Limits on number of shareholders, who must be U.S. citizens or residents
• Must hold annual meetings and record meeting minutes

Sole Proprietorships

• Owner remains personally liable for lawsuits filed against the business
• No state filing required to form a sole proprietorship
• Easy to form and operate
• Owner reports business profit and loss on their personal tax return

Review our Business Comparison Chart for more details. Regardless of business structure you choose, Frist Choice Accountingcan help you incorporate or form and LLC for much less than the cost of using an attorney.

Call Us Today!

Call today and see how we can save you time and money.

Phone:  (727) 842-5213 - email:  fcaccounting@verizon.net