e-commerce entities
Choosing your business structure is as important – if not more important – than marketing. You should consult with your accountant or attorney in the formation of your business. The process in creating your company is as follows: these are just the key points that must be done, but not necessarily in the exact order listed.
First Instead, you need to reach a company name and determine if the address is available for that website. If the address is available for that name, the next step is to register that name with the Secretary of State in the state you reside in at this point, there are two options: one is to consult with your accountant or CPA to determine whether you should be a sole proprietorship, partnership, corporation or limited liability Corporation. At least reserve the name with your Secretary of State for a minimal fee, while to decide what business entity should be.
Here are the four types of business structures and a brief explanation of each:
1. Sole Proprietorship – A sole proprietorship is a married couple or individual in business alone. Sole proprietorships are the most common form of business structure. This type of business is simple to form and operate, and can benefit from greater management flexibility, less legal regulation and less taxes. However, the owner of business is personally liable for all debts contracted by the company.
2. Alliance – A General Partnership is composed of two or more people (for usually not a married couple) who agree to contribute money, manpower and / or skills for the company. Each partner shares the profits, losses and the management Company, and each partner is personally and equally liable for the debts of the partnership. Formal terms of the partnership are usually contained in a collaboration agreement writing.
3. Limited Liability Corporation – a Limited Liability Company (LLC) is composed of one or more persons or entities through a special written agreement. The agreement includes provisions for management, the ability to assign to the interests and the distribution of profit and loss. Limited liability companies are allowed participate in a lawful, for profit business or activity other than banking or insurance. LLC, can not have more than 35 shareholders.
4. Corporation – A corporation is a complex business structure. Chartered as a legal entity, a corporation has certain rights, privileges and responsibilities beyond of an individual. Doing business as a corporation can give tax or financial benefits, but these can be offset by other considerations such as licensing fees increased or decreased personal control. Corporations may be formed for profit or nonprofit.
As you can see, each entity is different. In my opinion, I too would be a limited liability company or corporation. There is no record of a little more maintenance involved in a company, but is by far worth it time and effort you spend. I attended a financial seminar about 15 years ago and learned that if I could take advantage of discounts was not so, only normal working person can only be eligible for 70 different deductions. If I owned a house was a little over a hundred of deductions. If I was in the business for me was about 200 deductions available. This is where things changed: if I were a company, there were over 300 deductions!
Thus, The moral of the story is this: if you can be a corporation, a corporation, but it is absolutely necessary to speak with your accountant or attorney before making a determination which the business entity should be.
About the Author:
Tom Perkins is a business solutions coach and certified personal trainer who leads fitness professionals to profitability.
Send an email to
thecoach1-140208@autocontactor.com
to receive the Essential Business Success Checklist. Or visit his website at
http://www.fitnessindustrysolutions.com.
Article Source: ArticlesBase.com – How To Choose The Proper Business Entity?
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