Strong structure.Q I am launching my own small business venture, but I have some questions regarding business structures. Is there a right or wrong choice when choosing the type of business structure you will use? What are the advantages and disadvantages of each as well as tax consequences I should be aware of? T. Mills Via the Internet A Here are a few guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. : * Sole Proprietorship A form of business in which one person owns all the assets of the business, in contrast to a partnership or a corporation. A person who does business for himself is engaged in the operation of a sole proprietorship. : This is owned by one person or a husband and wife. The sole proprietor is responsible for 100% of all business debts and obligations. * Partnership: An agreement between two or more business partners to carry on a trade or business. Each partner contributes money, property, labor, or skills and each expects to share in the profits and losses. * Limited Liability Co. (L.L.C.): The business can be transferred to new owners by agreement, and losses are deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). against other income, L.L.C.s cost more to set up and file taxes for. * C Corporation: A separate legal entity formed under state law that has authority to act in a manner that s distinct and independent of its shareholders. The income or losses of a C corporation do not flow through to shareholders. * S Corporation: While C corporation pay corporate income tax on the profits they generate, taxes are deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from the individual stockholders of the S corporation. Personal assets will not be at risk because of the activities or liabilities of the S corporation. When you incorporate, your business name has to be different from any other entity already incorporated or formed in the state. For more information, visit www.nass.org/sos/2004roster.html. Mail your small business questions to Savvy Savvy® Gynecology A contraceptive vaginal gel that ↓ transmission of STDs–eg, HIV, chlamydia, gonorrhea. See Contraceptive. Solutions, BLACK ENTERPRISE, 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to hughesa@blackenterprise.com. |
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