Common Types of Business Structures for Small Business: Choose the Most Suitable One

Are you thinking to become a freelancer or self-employed?

Are you considering to start a new business?

If you are one of above, I am so excited to start a journey with you about your business.

Common Types of Business Structures for Small Business: Chose the Most Suitable One

What to Consider Before Jumping in to a Business

Current Situations

Business Goals within 1-5 years?

Tax Preferences

Personal Liability

Are you planning to hire employees?

4 Most Common Types of Business

Sole Proprietorship

Who Should Start with Sole Proprietorship

  • You are in a full-time job and would like to do side hustle after work.
  • You are a full-time worker on weekdays and a photographer on the weekends.
  • You would like to test the water to see if being a freelancer is suitable for you.
  • You would like to start your personal brand but do not find the position yet.
  • You are still exploring your niche and testing the market.
  • You just start your personal brand and already have your own product but do not have stable income.

❙ How is Sole Proprietorship Taxed?

Limited Liability Company

Features of LLC

❙ Members

Single Member LLC

Multi Member LLC

❙ Who Needs LLC?

  1. You are required to sign a contract with your client. Just like a protective shelter, LLC will protect your personal assets and liabilities when you face lawsuits.
  2. You have confirmed your niche and done with market testing. Your products and services have met the needs for a group of people.
    Also, you have to collect sales tax on your products.
  3. Your business start to experience stable growth.

How is LLC Taxed?

S Corporation

❙ Features of S Corporation

Who Can Switch to S Corporation?

  • You originally set up a LLC and would like to switch to S Corporation to lower your tax.
  • You are originally C Corporation and would like to avoid double taxation.

How is S Corp Taxed?

Corporation

Feature of C Corporation

❙ Who Should Choose C Corporation

How is C Corp Taxed?

Business Structure Development

  • Stage 1. Sole Proprietorship: Looking for niche and testing the market.
  • Stage 2. Limited Liability Company ( LLC ): Confirmed the niche and products
  • Stage 3. S Corporation or C Corporation: The business has been operating and growing stably.

在〈Common Types of Business Structures for Small Business: Choose the Most Suitable One〉中有 2 則留言

  1. 原本我開的是影音製作公司現在新增教學培訓這一塊,請問我需要另外再開一間公司還是可以新增營業項目?

    1. 基本上,只要你經營合法業務,美國對於公司營業項目沒有太多的限制。

      1. 如果你新增的教學培訓也跟影音相關,就沒有太大的關係。

      2. 如果你的教學培訓需要什麼執照或許可,只要另外再向州政府遞交相關資料即可。

      以上,謝謝你的留言詢問~

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