Ask SCORE - July 2014 - "What Is The Best Legal Structure For My Business?"

Ask SCORE 
          I’m in the process of establishing a graphic design/web development business. 
Should I form a corporation? 

 

CHOOSING YOUR BUSINESS ENTITY
By Attorney Ruth-Ellen Post


The four most common forms of business structure are:

  • LLC (Limited Liability Company)
  • CORPORATION (Conventional and Subchapter S)
  • PROPRIETORSHIP
  • PARTNERSHIP

The following outlines provide very general information on some of the main
similarities and differences among these business structures in six key areas:

The following outlines provide very general information on some of the main
similarities and differences among these business structures in six key areas:

 

  1. What it is – a working definition Liability protection – whether the business structure provides that or not How each business structure is treated for federal tax purposes
  2. Advantages of each
  3. Disadvantages of each How each is formed
  4. Other, less frequently-used business forms (such as Professional Corporations,
  5. Professional Limited Liability Companies) are not discussed here.

NOTE: This guide is intended only as a broad, general overview.
Business owners should always consult a professional for individual guidance.

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About the Author

          This column is brought to you by the Merrimack Valley Chapter of SCORE, with 
nearly 70 current and former business executives available to provide free, confidential, 
one-on-one business mentoring and training workshops for area businesses. Call 603-666-7561 or visit merrimackvalley.score.org for information on mentoring, upcoming 
workshops and volunteer opportunities. SCORE is a national, non-profit organization 
and a resource partner of the U. S. Small Business Administration.