Proper Business Organization
If you have decided
to open a new business, make sure you do it right. Consult with a
professional to ensure that you have the best organizational structure for your
type of business. This will ensure that you are protected not only from
personal liability if necessary, but also from paying too much in income taxes.
Any individual who engages in an
enterprise for the purpose of making a profit is a sole proprietor. There
is no special paperwork to complete, unless you
are selling products and then
there will be state and local sales taxes to deal with.
The same is true for more than
one person who are joining together to make a profit. This is now a
partnership. The same rules apply to a partnership as to a sole
proprietorship, except the income tax forms that needs to be completed
annually.
Many individuals have heard of
the Limited Liability Company (LLC) and know that an LLC will limit liability
so that if someone is injured by your business, there is usually a layer of
protection to insulate your personal assets. It is very important to seek
professional guidance with this entity, because if the proper forms are not
completed, the tax ramifications can be shocking at tax time.
S Corporations contain more
strict record keeping requirements than an LLC, but offer the same level of
liability protection. If the record keeping is not kept up to date and
properly, the liability protection an end up being stripped away because of the
deficiency.
This time of year, there are a
number of businesses that learn the hard way that they missed something when
they were completing their initial set up. Even though you may have not
initially completed the documents properly, not all is lost. We can
usually fix the deficiency before another year goes by. Contact the
office to schedule an appointment and I can evaluate your situation and offer
you the best "fix" for your situation.
Law Offices of Angela Boeck-Giscombe P.C.
719-638-8877 For more information "Visit Our Website"
Any individual who engages in an
enterprise for the purpose of making a profit is a sole proprietor. There
is no special paperwork to complete, unless you
are selling products and then
there will be state and local sales taxes to deal with.
The same is true for more than
one person who are joining together to make a profit. This is now a
partnership. The same rules apply to a partnership as to a sole
proprietorship, except the income tax forms that needs to be completed
annually.
Many individuals have heard of
the Limited Liability Company (LLC) and know that an LLC will limit liability
so that if someone is injured by your business, there is usually a layer of
protection to insulate your personal assets. It is very important to seek
professional guidance with this entity, because if the proper forms are not
completed, the tax ramifications can be shocking at tax time.
S Corporations contain more
strict record keeping requirements than an LLC, but offer the same level of
liability protection. If the record keeping is not kept up to date and
properly, the liability protection an end up being stripped away because of the
deficiency.
This time of year, there are a
number of businesses that learn the hard way that they missed something when
they were completing their initial set up. Even though you may have not
initially completed the documents properly, not all is lost. We can
usually fix the deficiency before another year goes by. Contact the
office to schedule an appointment and I can evaluate your situation and offer
you the best "fix" for your situation.
Law Offices of Angela Boeck-Giscombe P.C.
719-638-8877 For more information "Visit Our Website"
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