Sole proprietorship: A sole proprietorship is the simplest corporate structure and is suitable for small, one-person businesses. In a sole proprietorship, the business and the owner are considered a single entity for tax purposes.
- Partnership: A partnership is a business owned by two or more people. Partnerships can be either general partnerships, in which all partners are actively involved in managing the business, or limited partnerships, in which some partners are passive investors and do not participate in management.
- Limited liability company (LLC): An LLC is a hybrid business structure that offers the liability protection of a corporation and the tax benefits of a partnership. LLCs can be owned by a single person (a single-member LLC) or by multiple people (a multi-member LLC).
- S-Corporation: An S-Corporation is a corporation that has elected to be taxed as a pass-through entity (like an LLC or partnership). S-Corporations are suitable for small to medium-sized businesses that want to avoid double taxation (where the business is taxed on its profits and the shareholders are taxed on their dividends).
- C-Corporation: A C-Corporation is a traditional corporation that is taxed as a separate entity from its owners. C-Corporations are suitable for larger businesses that may want to issue stock to raise capital or that expect to generate significant profits.
Here is a bookkeeping template to help you produce monthly, quarterly, and annual financial statements. (accrual or cash basis capable)
I recommend consulting with a business attorney or tax professional to determine the best choice for your situation.
Article found in Startups.
