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Starting a New Business: Are you confused about where to begin?

starting a business

The first steps you take as a new business are important ones. Tailor-Made Financial Services helps you get started on the right foot. Based on getting to know your business and its direction, Christine Taylor helps you determine the right type of business entity for your new venture as well as provides guidance with business licenses, tax registrations and reporting, and other confusing, yet important, tasks ahead of you.

Types of businesses:

Sole Proprietorship

A sole proprietorship is a business owned by one person. This business entity has unlimited liability for business debts. That means if your business is sued for any reason, your personal assets, not just your business assets, are at stake. The income of this business entity is taxed at the individual owner’s level.

Partnership

A partnership is a company owned by two or more people. Partners have unlimited liability for business debts, unless your business is an LLC treated as a partnership. The income of this business entity is taxed at the individual owners’ level.

Corporation

C-corporations are taxable entities. The corporation itself is taxed on its income rather than the owner, as is the case with sole proprietorships, partnerships and LLCs. Corporations also protect the owner’s personal assets from business debt.

S-Corporation

S-Corporations are a tax election option for corporations and LLCs. It means a corporation or LLC can elect to have the income from the company be passed to the shareholders of the company and it will be taxed at their level.

LLC (Limited Liability Corporation)

An LLC is a hybrid business entity with characteristics of both a corporation (limited liability) and a partnership or sole proprietorship (pass-through income taxation). It is often more flexible than a corporation and is well suited for companies with a single owner.

Tailor-Made Financial Services, LLC helps your business grow! Contact us for a free consultation today.


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