Chapter 2
Making Important Business Decisions
IN THIS CHAPTER
Understanding why many businesses go “solo”
Assessing the incorporation decision
Surveying S corporations, partnerships, and limited liability companies
Recognizing the value of employee benefits
As a small business owner, you face many important decisions. This chapter deals with two big ones that come up in the early days, months, and years of your venture.
- First is the type of business entity you’ll operate under — sole proprietor, C or S corporation, limited liability company (LLC), and so on. This decision impacts the liability exposure you have, tax-reporting requirements, and income taxes you and your business will owe.
- The second is the benefits your business may consider for yourself and any employees.
Choosing Your Business Entity
Many small-business owners don’t fully consider (or aren’t even aware of) the options they have for the entity under which they conduct their business. Most entrepreneurs default into sole proprietor status for a variety of reasons. But you should be aware of all your choices — ...
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