Business Structure Advice
Business Structure AdviceFIN/571Business Structure AdviceDear John Owen,
My name is _____________, I will be your consultant and provide brief answers for each of your questions. Here is a list of useful tips for starting a business:
First, you need to be clear about why you want to start a business.
Determine the type of business and business structure you want to start (sole proprietorship, partnership, corporation, or (LLC) Limited Liability Company).
Create a business plan that covers what you offer (type of product or service), the target audience, and how much you will charge.
Your target audience is the core of your business. Before you start a business, conduct a market survey about what is most important to the customer. This survey should help you decide about a location also.
Determine your price. Pricing does not cover the cost alone, you must generate a profit for the business; cover each and every aspect of the business.
The core of starting a new business is the startup money. There are several ways a new business can be financed: small business loans, personal assets and savings, partnerships, or limited partners (if you are considering a larger business).
Determine the legal form of the business entity. This tells you which form of taxes you will file; Income Tax, Self Employment Tax, Taxes for Employees, or Excise Taxes.
Create and register the name of the business.
Advantages of Each Business Structure
Sole Proprietorship is not a legal entity; however, it is the easiest (less complicated), least expensive startup, with the fewest forms and regulations. You are your own boss and make all the business decisions. The sole owner is responsible for taxes filed on a standard Form 1040, Schedule C.
A Partnership shares every aspect of the business (investment, business decisions, profits, and losses) equally with few formalities. Partnerships are relatively easy to start because there is more capital available. It is recommended to have
My name is _____________, I will be your consultant and provide brief answers for each of your questions. Here is a list of useful tips for starting a business:
First, you need to be clear about why you want to start a business.
Determine the type of business and business structure you want to start (sole proprietorship, partnership, corporation, or (LLC) Limited Liability Company).
Create a business plan that covers what you offer (type of product or service), the target audience, and how much you will charge.
Your target audience is the core of your business. Before you start a business, conduct a market survey about what is most important to the customer. This survey should help you decide about a location also.
Determine your price. Pricing does not cover the cost alone, you must generate a profit for the business; cover each and every aspect of the business.
The core of starting a new business is the startup money. There are several ways a new business can be financed: small business loans, personal assets and savings, partnerships, or limited partners (if you are considering a larger business).
Determine the legal form of the business entity. This tells you which form of taxes you will file; Income Tax, Self Employment Tax, Taxes for Employees, or Excise Taxes.
Create and register the name of the business.
Advantages of Each Business Structure
Sole Proprietorship is not a legal entity; however, it is the easiest (less complicated), least expensive startup, with the fewest forms and regulations. You are your own boss and make all the business decisions. The sole owner is responsible for taxes filed on a standard Form 1040, Schedule C.
A Partnership shares every aspect of the business (investment, business decisions, profits, and losses) equally with few formalities. Partnerships are relatively easy to start because there is more capital available. It is recommended to have