When starting a business one of the most important decisions is to select the proper business entity for your business. When creating your business, you have four basic entity types you can choose to use. Each one has its advantages and disadvantages, based on what you sell, your business’s finances, and the number of owners the business will have.
When choosing a business entity, you should consider: (1) the degree to which your personal assets are at risk from liabilities arising from your business; (2) how to best pursue tax advantages and avoid multiple layers of taxation; (3) the ability to attract potential investors; (4) the ability to offer ownership interests to key employees; and (5) the costs of operating and maintaining the business entity. However, when selecting a business entity, many entrepreneurs often do not consider an S Corporation because they do not understand what it is. This article explains what an S Corporation is and what its advantages and disadvantages are. Read More