Business formation is a necessary step when opening a business and makes the business a distinct legal entity. There are four main types of business formation options: Limited Liability Company (LLC), partnership, sole proprietorship, and corporation.
Whether you choose to be a Corporation, an S-Corporation, a Partnership, a Limited Liability Company or a Sole Proprietorship, your choice will have tax and business implications.
The business structure you select will not only determine who will be taxed and how, but it also determines liability and record-keeping.
To avoid potential pitfalls in the future, it’s important to set your business up correctly from the start. Having a CPA who is well versed in business entity formation is truly invaluable.
At Cappelle Accounting, we will take all the factors that need to be considered into account, discuss your options with you, and determine which entity will be the most beneficial for your specific, unique situation.