We've come pretty far in our exploration of the different types of business formation structures. We covered Sole Proprietorships and Limited Liability Companies already and today we're going to explore a new one: Partnerships!
We discussed the simplest business form, the Sole Proprietorship, and now we're back to discuss another type, the Limited Liability Company (LLC). This biz type is a little harder to set up but has certain benefits not available to Sole Proprietors. Mostly involving tax and liability...WAIT! DON'T LEAVE! This is valuable info for you and your business so stick with me here!
Figuring out what legal form your business should take is one of the things I'm most frequently asked about. But I have to admit, it's probably the least sexy part of starting your biz. I mean...taxes are involved. Need I say more? I know your eyes just glazed over. But it also happens to be one of the most important decisions you have to make. It's going to impact how you're taxed, how much liability you will have for your business' debts and how the IRS will treat you. We're going to start this journey with the cheapest and easiest legal form: Sole Proprietorships.