Legal Structure
From Smallbusinesslibrary
When setting up a small business it is important to consider the legal structure you plan to utilize, be it a sole proprietorship, partnership, limited liability company, c corporation, or s corporation. This decision is important not only for taxation purposes, but also for personal liability as a small business owner.
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Choosing The Right Legal Business Structure
Here are some resources on how to choose the correct legal business structure:
Choose A Structure (SBA.gov)
This article from the SBA outlines the major types of business ownership structure, and provides advantages and disadvantages for each.
Incorporation And Filing DBA Papers (Jumpup.intuit.com)
An easy to read article that explains the differences between business structure options, and discusses some of the pros and cons of each.
How Business Legal Structures Work (Money.howstuffworks.com)
This detailed article first gives a background on why it is important to correctly structure your business, and provides detail on the different structuring options available. Includes an explanation of what liability is and why it is important in regards to how you structure your business.
Ownership Structures (Nolo.com)
This page contains an extensive list of links on the Nolo website regarding legal structure. Links include articles on how to choose the right business structure as well as FAQ’s for each type of structure.
Taxes and Legal Structure
Here are resources on the impact of legal business structure on income taxes:
Structure Your Business With Tax Breaks In Mind (Inc.com)
This article from Inc Magazine provides some insight into how to structure your business to best take advantage of tax breaks. While the article is slightly dated (2003) it still provides an interesting perspective for prospective small business owners.
Business Structure (IRS.gov)
This dense set of links from the IRS includes recommended tax forms for each type of business structure.
