Want to start a business but you’re not sure what type of business to select? Want to maximize your profit and pay lower business taxes by selecting the right business type? Want to change your business type to avoid legal liability? This guide will walk you through the process of selecting a business type and getting that business registered with your state.
Purpose of This Guide to Business Types
Many people will try to give you advice on selecting a business type.
Some will say, “this is the best type because it works for me.” Attorneys may try to steer you to incorporating because it’s the only business type they know. Others will tell you an LLC is the “best” type. Before you make a decision that will cost you lots of money, learn about the types of business in this guide. By the time you work your way through this guide, you will have a good basic understanding of business types and you will be on your way to selecting the type of business that best fits your needs.
The guide is set up in lessons, as a course of study. You can take the lessons in order, or jump to a topic that fits the questions you have at the moment. As you work through the process of setting up your business legal type, you may want to bookmark this guide so you can refer to it easily.
Lesson One – An Introduction to Business Types
- The two basic business types – separated from owner and not separated from owner (by William Perez, Expert on Taxes
- A Checklist of Factors to Consider in Selecting a Business Type
- Business and Legal Factors in Selecting a Business Type, from William Perez, Expert on Taxes
- Business Types and Employment Taxes
- All About the Sole Proprietor Business
Lesson Two: Partnerships and Limited Liability Companies (LLCs)
- What is a Partnership
- How to Start a Partnership
- Types of Partnerships
- The Partnership Agreement
- What is a Limited Liability Company (LLC)?
- How to Form an LLC
- All About the Single-Member LLC
Lesson Three – Corporations and S Corporations
- Types of Corporations
- Corporations, Liability, and the Corporate Shield
- How to Become an S Corporation
- More about S Corporations
- Corporations vs. S Corporations – A Comparison
- Corporations vs. LLCs, a Comparison
- S Corporations vs. LLCs – A Comparison
Lesson Four – Income Taxes for Business Types
- How a Sole Proprietor Pays Income Taxes
- How a Partnership Pays Income Taxes
- How an LLC Pays Income Tax
- How a Corporation Pays Income Tax
- How an S Corporation Pays Income Tax
- Business Types and Profitable vs. Unprofitable Businesses, by William Perez, Expert on Taxes
Lesson Five – Selecting a Business Type
- Advantages/Disadvantages of Sole Proprietorship
- Tax Advantages and Disadvantages of an LLC
- Business Type Comparison Listing/Factors
- Liability Comparison – LLC vs. S Corporation