If you are currently a sole proprietor, or are planning to start a small business soon, I highly recommend spending the money and becoming an LLC.
(As much as 36,500 per employee per year!
C Corporation, s Corporation: Similar virtual clone drive latest version to the "C" Corporation, the "S" corporation offers all the benefits of vlc media player installer a corporation, but with a different tax structure.
Slide 7 of 7, exit Policy.S corporations pay no Federal income tax, but pay state level ad more about.For more help in deciding on the best legal structure for your business, see.If you do business under a name different from your own (such as "Custom Coding" instead of "Jim Smith Graphics you usually must register that name - known as a fictitious, or assumed, business name - with your county.One day Roger, one of Shirley's employees, is delivering flowers using a truck owned by the business.Registration of LLC is complex and requires registration filing fees to a public regulatory commission and the services of a lawyer; or you can skip the legal fees and incorporate on your own.
A sole proprietor does not have to pay payroll taxes that a corporation has to, and can deduct the spouses healthcare reimbursement arrangements when filing self-employment tax.
The proprietor owns all assets of the sole proprietorship whereas the LLC owns the assets.
Sole proprietorships are so easy to set up and maintain that you may already own one without knowing.
Example 2: Shirley is the owner of a flower shop.
It does not require a separate registration, and only needs a business license from the local county to start the business.Sole proprietors, partners in partnerships, and S corporation shareholder-employees can't participate in HRAs.The proprietors personal wealth, including home and personal accounts, even if not intended for the business, remains connected to the business and open to attachment by the court to recover business related obligations.An LLC is a separate business entity that is owned by investors known as members.Personal Liability, the biggest disadvantage of Sole Proprietorship and the biggest advantage of the Limited Liability Company is personal liability.As sole proprietor, Lester is personally liable for this business obligation.However, the most common forms are the Limited Liability Corporation (LLC) and the Sole Proprietorship.That saves you roughly 1350 annually.S Corporation, limited Liability Company: Limited Liability Company (LLC) - combines the limited liability protection of a corporation with the flexibility and pass through taxation of a partnership.