The structure you choose for your business will affect how your business is taxed and the degree to which you can be held personally liable. Here is a brief overview of the various structures:<\/p>\n
Sole Proprietorship<\/strong><\/p>\n This is a popular structure for single-owner businesses<\/strong>. No separate business entity is formed.<\/p>\n You report your business income and expenses on Schedule C, an attachment to your personal income tax return. Net earnings the business generates are subject to both self-employment taxes and income taxes. Sole proprietors may have employees but don’t take paychecks themselves.<\/p>\n Limited Liability Company<\/strong><\/p>\n If you want protection for your personal assets<\/strong> in the event your business is sued, you might prefer a limited liability company (LLC). An LLC is a separate legal entity that can have one or more owners. Usually, income is taxed to the owners individually, and earnings are subject to self-employment taxes.<\/p>\n Corporation<\/strong><\/p>\n A corporation is a separate legal entity that can transact business in its own name and files corporate income tax returns<\/strong>. Like an LLC, a corporation can have one or more owners. Shareholders generally are protected from personal liability but can be held responsible for repaying any business debts they’ve personally guaranteed.<\/p>\n Partnership<\/strong><\/p>\n A partnership is like an LLC or an S corporation. However, partnerships must have at least one general partner who is personally liable<\/strong> for the partnership’s debts and obligations. Profits and losses are divided among the partners and taxed to them individually.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The structure you choose for your business will affect how your business is taxed and the degree to which you can be held personally liable. Here is a brief overview of the various structures: Sole Proprietorship This is<\/p>\n","protected":false},"author":2,"featured_media":383,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[10,14,12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/382"}],"collection":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/comments?post=382"}],"version-history":[{"count":1,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/382\/revisions"}],"predecessor-version":[{"id":384,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/posts\/382\/revisions\/384"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/media\/383"}],"wp:attachment":[{"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/media?parent=382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/categories?post=382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westevens.com\/blog\/wp-json\/wp\/v2\/tags?post=382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}