Donald Hyun Kiolbassa
Attorney At Law, Ltd
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Guidance in starting your business
If you have an amazing opportunity, you may want to start your own business. If that is the case, you will have to choose the vehicle to operate your business. There are many factors to consider in choosing which one is right for you.
Here are 3 of the most commonly used entities:
Sole ProprietorSole Proprietor is the simplest and most common structure. It is an unincorporated business owned and run by one individual with no distinction between the business and the owner.
Sub Chapter S Corporation (S-Corp)In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
Limited Liability Company (LLC)A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.