How Should You Incorporate Your Business? Here’s a Cheat Sheet. (Infographic)
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There are lots of super sexy reasons to become an entrepreneur — the independence, the possibility of financial success, the thrill of bringing an innovative idea to life. But don’t be fooled. There are a lot of complicated, tedious and mundane aspects to being an entrepreneur, too.
Like doing your taxes. And your expenses. And — perhaps the most dreaded — determining how you will legally structure your business.
Deciding whether to register as an S Corp, a C Corp, an LLC, sole proprietorship or a partnership can be tricky. Each has unique benefits and costs that have serious implications for your bottom line.
For example, if you decide to establish your business as a sole proprietorship, the tax burden will be the lowest, but you will be held personally liable if your business goes into debt or can’t pay back a business loan. If you decide to structure your business as a C Corp, you will face burdensome and complex legal requirements, but the personal assets of you and your shareholders are protected from business losses.
The infographic embedded below, , neatly breaks down each legal structure in terms of its costs and complexity and advantages.
Check it out.
Click to Enlarge+
There are lots of super sexy reasons to become an entrepreneur — the independence, the possibility of financial success, the thrill of bringing an innovative idea to life. But don’t be fooled. There are a lot of complicated, tedious and mundane aspects to being an entrepreneur, too.
Like doing your taxes. And your expenses. And — perhaps the most dreaded — determining how you will legally structure your business.
Deciding whether to register as an S Corp, a C Corp, an LLC, sole proprietorship or a partnership can be tricky. Each has unique benefits and costs that have serious implications for your bottom line.
For example, if you decide to establish your business as a sole proprietorship, the tax burden will be the lowest, but you will be held personally liable if your business goes into debt or can’t pay back a business loan. If you decide to structure your business as a C Corp, you will face burdensome and complex legal requirements, but the personal assets of you and your shareholders are protected from business losses.
The infographic embedded below, , neatly breaks down each legal structure in terms of its costs and complexity and advantages.
Check it out.
Click to Enlarge+
