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‹ Punchline Hot Seat: Part Four MSN: A Comics Extinction? ›

Starting a New Business

The LegalZoom newsletter has an interesting piece entitled Five Things to Remember When Starting a New Business. Number One, understandably was to choose the right legal structure:

  • Corporation: Shareholders are not personally responsible for company debts; allows opportunity to raise capital from investors; formal record-keeping required; may reduce taxes, especially self-employment taxes.
  • Limited Liability Corporation (LLC): Generally protects personal assets from company debts; no corporate tax as profits can be passed directly to owners; fewer corporate formalities required.
  • Sole Proprietorship: No corporate formalities required; run by one individual who is personally responsible for the business’s debts.

 

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by Brad Guigar on April 11, 2011
Posted In: Uncategorized
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