posted Aug 19, 2011, 8:12 AM by Liang Zhang
- Taxes:
Beware of the different tax treatment
with all entities. There are advantages and disadvantages in different
forms of business. You need to know the taxation for each
form so you can avoid double taxation and other unwanted
consequences. Let us assist you with the formation of your business. Let
our expertise in corporate taxation help you with the
formation of your business.
- Cost:
A Sole Proprietorship, General
Partnership, Limited Liability company, and Corporation vary in filing
fees, tax liabilities, and other set up cost.
- Growth:
Some business entities are limited as to
the number of shareholders. This can limit your room for expansion.
- Capital:
Review the requirements of all entities
procedures for keeping records, distribution, fiscal responsibilities
and process of raising funds.
- Liability:
The risks and protections are from
minimal to extensive for these different entities. Putting
the liability directly on you will maximize the risk and may devastate
you financially in business as well as in personal side.
- Conformity:
As a business entity you may be
required to obtain a business license, permit or register with the
appropriate state in order to be in compliance. The way your form,
structure and operate your business in one state may not be accepted in
other states; and if you do not comply with individual state laws, you
will lose your business rights.
- Contracts:
Businesses are faced with a variety of
contracts. Before entering into a financial commitment for leasing
office space, warehouse, providing services, purchasing supplies, be sure it will fulfill your
business needs currently and for the foreseeable future. Entering into
partnership and by-sell agreements can be very complicated.
- Control:
Your business entity can dictate the
manner in which the business is operated. Choosing the wrong entity may
make you personally liable for the wrong doings of employees and
other partners.
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