For people — more specifically women — who start a business, they’re adding more to their existing to-do lists. In addition to shuttling the kids to soccer, planning dinner, and managing the household you now have to register your business, choose a name, set up a site…the list goes on and on!
I have made a career for myself out of helping entrepreneurs in their journey to starting a business. The biggest decision you’ll make in legalizing your business is choosing what type of business entity works best for your brand. Here’s an overview of your options:
- Corporation (C Corp or S Corp): Protects your personal assets. Offers certain tax deductions and benefits. Acts as its own entity.
- LLC: Also protects your personal assets. Has fewer hoops to jump through than a corporation. Doesn’t require you to file business taxes (just report the income on your personal tax forms).
- Sole Proprietorship or Partnership: Your personal assets are liable, should you be sued, and can be taken from you. You file taxes as an individual.
Many business owners end up with the wrong business entity simply because they don’t know which one best suits their needs. Continue reading “Getting Your Business Legal” »