Types of Business Entities

Do Your Own Taxes - Fee from Refund
Bankruptcy
Claiming Social Security Disability
FREE 2008 CPA Moms Tax Review Details
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Reports
Social Security
Do Your Own Taxes - Fee from Refund
Deliquent Tax Returns
Garnishment
Retirement Planning
CPA Moms Master Index
Overview - Type of Business Entities
Sole Proprietors
Partnerships
C Corporations
LLC's - What is it?
Mileage Expenses
Office in Home
Business Deductions
Types Home Page
Latest Business News
Business Articles
Additional Resources
Want to Join the Moms?
Type of Business Blog


Death & Taxes

We have Information to Help You with Either


Got Question for a CPA Mom?


IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

To pay for Services - Please click on Paypal Logo below

Tax & Accounting Services

 

Books on Incorporating



What Type Of Company Should I Set Up?

 

 

When setting up your company you need to decide at an early stage how you intend to structure it. What type of company legally beneficial - a Limited Company, a Partnership, Limited Liability Partnership or Sole Trader?


This decision can have both legal and practical implications, so it's an important decision to make. It's advisable to seek individual advice before you commit yourself to any of the four basic options:


Limited Company


A limited company is where shareholders (members or owners) have limited liability to the company's debts. Their liability is restricted to the value of the shares that they own or the guarantees that they signed up to. This could be as little as 1.


A limited company is a separate legal entity. It can sue and be sued and will continue to exist even if the members or owners die or resign. It can only be folded if it is wound up or struck off the register by Companies House.


In return for these benefits, limited companies are governed tighter rules and regulations than partnerships or sole traders. Among other things they are obliged to:


* File annual accounts and returns at Companies House, facing penalties if they are late.
* Appoint at least one company director and a company secretary - and face criminal prosecution if they fail to.
* They have to use the word limited in their company name
* Notify any changes to members, officers or registered office address.


Partnership


A partnership is a business arrangement where 2 or more people (usually up to a maximum of 20) are in business together to make a profit. A partnership agreement has no limited liability of debts as partners share the business costs, profits and debts


Limited Liability Partnership (LLP)


The Limited Liability Partnership (LLP) came into operation on 6 April 2001. It is a new legal business structure that aims to combine the flexibility of a partnership arrangement with the benefits of limited liability. The main differences between a limited company and an LLP are that that the latter is taxed as a partnership rather as a corporation and that it has more organisational freedom. An LLP's duties in return for the limited liability status are similar to those applying to limited companies.


Sole Trader


A sole trader is someone who is in business on his or her own account. They are self employed and personally liable for any debts the business incurs.


It is imperative that you work out which of these four options is right for you as it has wide-ranging implications. Often the decision will be forced on you by the rules of the business you work in or your personal circumstances. For example a solicitor or accountant planning to set up his or her own law or accountancy firm is in effect forced to be either a sole trader or in a partnership. This is because the law currently does not allow solicitors or accountants to limit their liability and therefore, will not allow them to form limited companies.


You may like the independence that a sole trader has to offer or you may wish to limit the risk you are taking by opting for a Limited Company or LLP. Either way, you need to consider the decision carefully and should seek specialist advice from your solicitor or accountant.

 

Brainybusiness.com provides business and personal development resources to help small and growing businesses start, manage and expand their business. The site contains books, articles, free ebooks and resources. Visit: http://www.brainybusiness.com



 

 

Privacy Policy .. About Us  .. Disclaimer ..  Copywrited 2005  - 2006 - Developed by  Tax Net Inc