LLC, S Corp, Sole Proprietorship – Does it Really Make a Difference?

The initial decisions made in starting up a business can have a significant impact as your business grows.  Starting from a proper base can allow you to customize and expand your business structure as the business expands, whereas a “quick and dirty” approach can create bigger headaches in the future for the business.  This simple guide will help the emerging business with some of the basics of the common formation options.   Sole Proprietorship – This is one of the easiest paths to set up and run a business.  You basically just run the business without any formal entity structure.  Unless you have employees, you will likely use your own social security number for financial transactions and all of the finances are reported on your own income tax return.  However, the biggest concern is that this structure does not provide you the owners with any liability protection from your business operations.  In other words, if your business g... [More]