Choosing a Business Entity?
Deciding to start a business is an exciting decision. But determining how you should formally organize and structure it can be intimidating. At best, the determination is often the result of a kind of calculus that looks at formation expense, personal liability protection, potential tax savings, and the complexity of ongoing compliance formalities. At worst, the aspiring entrepreneur merely slides into business and ends up with a business structure they neither intend nor understand.
Nonetheless, one of the very first and most important decisions you must make is what type of business entity your new business will be. Its absolutely critical to your future success and survival.http://www.legaltrex.com
Taxation—A corporation is treated as a separate tax entity that is distinct from its shareholders. As such, the corporation is taxed on all its profits. However, a corporation can elect to be taxed like a partnership by filing IRS Form 2553. When it makes this election it is referred to as an S-corporation. http://www.legaltrex.com