April 2018
Beginner
768 pages
20h 9m
English
Content preview from Accounting All-in-One For Dummies, with Online Practice, 2nd Edition
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Chapter 2
Choosing a Legal Structure for a Business
IN THIS CHAPTER
Partnering with others in business
Gaining legal protections with an LLC
Looking out for number one in a sole proprietorship
Considering the tax ramifications of your choices
Forming a business can be easy as pie or extremely complicated, depending on the type of business entity being created. If you’re flying solo, you’re a business unto yourself and really don’t need to do anything to establish yourself as a sole proprietorship. Unless you say otherwise, the IRS considers your business a sole proprietorship. With a little extra effort, you can establish your business as a partnership, to share duties and profits among owners, or create a limited liability company (LLC) to provide your business with some extra legal protection. With a little more effort, and a lot more paperwork, you can establish your business as a full-fledged corporation.
This chapter presents the ABCs of the three types of business entities: partnerships, LLCs, and corporations. First, you get a brief overview of sole proprietorships and partnerships. ...
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