Can someone tell me the difference between each business structure?
i would like to get views from individuals on what they think the difference of each of these business are and examples.
* Sole Proprietirship
* General Partnership
* Corporation
2006-10-04 04:54:47 · 1 answers · asked by ooh la la 1 in Business & Finance ➔ Careers & Employment
The two main areas of concern when choosing a business structure are: Taxation and Liability.
IRS has a very good explanation of the different business entity structure and their taxation consequences.
http://www.irs.gov/businesses/small/article/0,,id=98359,00.html
Sole proprietorships and partnership both passes liability to its owner(s). So personal properties and not shield if a customer suits the business. Corporation and S-Corp has a lot more filing requirements, i.e. issue shares, annual reporting etc. For most small to medium size businesses LLC is the best choice. LLC shields business owners from business liability and easy to setup.
Best wishes.
2006-10-04 05:13:35 · answer #1 · answered by JQT 6 · 1⤊ 0⤋