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A Clear Perspective

New Business Center

When forming your company, you must choose a legal business structure. The different types of business structure will affect your tax liabilities, personal protection, and income reporting. Knowing how to start your own business will largely depend on the type of entity you decide to form.

In general, a business venture will be classified, for business and tax law purposes, as either: a sole proprietorship; a partnership; a corporation (S or C corporation); or a limited liability company.

Since each of these organizational forms presents unique tax and non-tax issues, the business owner (and his or her consultant) should take care in selecting the organizational form which is the most advantageous for both tax and business law purposes.