Business Entity Options

When forming your new business structure, you must consider the best possible alternative of the available business structures. While a sole proprietorship is the easiest type to create, there is no separate identity. Personal liability belongs to the owner. Should there be a lawsuit, accident or you incur debts that you can’t repay, your personal assets are at risk. The type of entity you choose should be based on careful consideration. Each state has specific rules for the structure of each type of entity. You should investigate the type of entity, the rules and laws pertaining to each in your state and at a federal level. Doing this will help you to gain enough knowledge to get started in the process.  Know enough to make an educated decision, but leave the details to the professionals that you will be working with.

More Than One Choice

The choices are – sole proprietorship, partnership, limited liability partnership, corporation, C corporation, S corporation, and LLCs. Sole proprietorship provides the least protection while corporations and LLCs offer limited personal liability for debts or judgments against the company. When creating your entity, you should use an attorney to create written documentation of the entity’s organization and structure. Your attorney, accountant or CPA can advise you of the legal and all tax consequences of your choice. Doing a little research prior to contacting a professional will reduce the time spent with an expensive professional. Do your due diligence to protect yourself and your family.

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3 Changes to Merchant Services To Watch For

In many industries changes happen at a steady pace. More recently the merchant services industry has had several big changes. One part is due to law changes. Another part is from technology advancing. Because of these changes businesses will be able to see 3 opportunities for themselves.

3 Opportunities

First, is that businesses can see more competitive rates. For example, the merchant services company I work with guarantees the lowest rates or they give you $1000. For big businesses, even 1/10th of a percent will mean thousands of dollars in savings that they can use in a variety of ways. Second, they will see that the transition and the ability to make changes are very easily made. This is done because merchant service businesses are eliminating the middleman.  And they are going directly to the card carriers. Small businesses have opportunities to change from one plan to the next easily. Companies love this flexibility as their company develops. Third, they should begin to see, specialization software based on the industry they are in. Sole-proprietors’ have an opportunity to customize processing software to their needs.  Your industry, whether a photographer, graphic designer, online seller, cosmetologist, esthetician etc. will benefit greatly from these changes. As you can see this information is very game changing for small business owners, sole proprietors, and also big businesses. Keep these in mind as you think about your merchant services. If anything sticks out that you have a question on please reach out to your current carrier or reach out to my team and we would be happy to answer them.

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