Sole Proprietorship

While this is quite simple to begin, it does mean that you may be personally liable for the debts of your business; and yes, that means putting your personal assets at risk.  You may also consider tax obligations and decide if you will need to raise capital in the future.  Let's all remember that some of the largest companies in America started from a garage of a small building.

Neon Painted Face

Fictitious Business Name/aka DBA

This may be considered a very basic requirement for opening a business checking account.  A function of a DBA is to show others that you inted to do business under this name or brand.  Be sure to check with your local county or city office if you would like to file a DBA.

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LLC

A Limited Liability Company is an option for formalizing an existing business, especially if you are seeking a way to reduce yourself of future personal liability.  There are many questions to ask yourself before making a decision.  We recommend speaking with an attorney before making your choice.  

501(c)(3)

After determining if you qualify to file, you may be able to submit an application to the IRS for approval.  If approved, you may be able to receive grants from government agencies.  There may be many state, federal and other income tax benefits to opening a 501(c)(3).

C and S corporation

You may need to consider the tax implications before making this choice.  While the IRS allows for the income in C corporations to be subject to double taxation, this is not the case for an S corp.  Either of these choices may protect you personally from suits.claims made against the corporation.

Sole Proprietorship         One Person                       Unlimited                        Personal                                                                                                                                    only                

                                                                                     

                                                                                      

tax-exempt, company profits can't be distributed

owners not liable personally

owners not liable personally

owners not liable personally

owners not liable personally

corporate tax

personal tax

self employment, corporate or personal

self employment tax (except for limited partners), personal tax 

unless structured as limited partnership, it will be unlimited

2 or more

partnership

1 or more

Non-profit, 501(c)(3)

1 or more, not more than 99, U.S. citizen

s corp

C corp

1 or more

1 or more

LLC/Limited liability

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Any information in this website should not be deemed as legal advice.

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