If you’re starting a business, you’ve probably heard there are good reasons to set it up as its own entity instead of running it as a sole proprietorship. Having a separate business entity goes a long way toward preventing business losses from affecting your personal assets, and there are tax advantages that may apply as well.
Posts tagged "choice of entity"
Every business starts small, over even home-based. If it’s in operation, no company is too small to run into serious legal problems, and you need to take them seriously. That means choosing and forming the appropriate legal entity, developing written contracts, and setting up policies and procedures.
There are many factors to take into account when choosing the most favorable business entity for your start-up, such as management style, the source of your financing, what kind of products or services you offer, liability risk, and tax considerations.