Sole Company Structure

John, when you start a business one has many choices in the type of business structure for use. The different types of business structures is the only company structure, the structure of the partnership, the structure of companies, the S Corporation structure, and the structure of the limited liability company. Each structure has its advantages and disadvantages and possible tax implications. The ownership structure is only owned and operated individually. The unique structure of ownership is less organized and is the simplest type of business to start. The advantages of sole structure company is easy and inexpensive to form, full control and tax preparation easy. The disadvantages of the sole company structure is unlimited personal liability

Each partner contributed to every aspect of business, including money, property, labor or skill, and any partner shares in the profits and losses of the company (US Small Business Administration, 2015). The disadvantages are the joint and several liability, disputes between partners, and joint profit. For tax purposes, the partnership is expected to present a annual information return to report the income, deductions, gains and losses of business, but the company does not pay income tax (US Small Business Administration, 2015). The partners said that the proportions of profit or loss from the partnership for their personal taxes. The company structure has several owners and managers, and is complicated and expensive. A corporation is a separate legal entity owned by the partners. The company itself is legally responsible for the actions and debts of the business. The advantages of a structure is a limited liability company, the ability to generate capital, business taxation, and attractiveness to potential employees. The disadvantages are time and money, double taxation, time, and paperwork. Companies pay income tax on their

Some states tax body S on profits above a certain threshold, while other states do not recognize the electoral body S and treat the business as a body C with all the tax consequences and certain tax both members of the body of the profits of the S and proportionate actions Members of profits (US Small Business Administration, 2015). A corporate structure Limited Limited offers the possibility of a structure of companies and partnerships. With a limited liability company, the characteristics of a company's capital and operational flexibility and tax benefits of the partnership envisaged. The advantages of a limited liability company is limited, fewer files and sharing profits. The disadvantages of a limited liability company is a limited life and self-employment taxes. In the eyes of the federal government, an LLC is not an entity separate fee, so that the company is not taxed the same. Instead, all federal taxes passed to the members of the LLC and paid through the personal income tax. It is advisable to take the following considerations to help you make the final decision on the structure of business and your