01 November 2019

I'm Starting a New Business..

What you must consider when starting a small business. One of the most frequent questions I’ve had over the last 30 years is by new small business owners. Should I incorporate, my small business? Entrepreneurs need to weigh the pros and cons of each form of business organization. You can set up your small business as a sole proprietor, S-Corporation, regular corporation, LLC etc. It’s a complex array of choices! The form of entity type that is best for your small business depends on several factors, some of which are tax-related, some are business related and some will be influenced by your individual legal concerns. Believe it or not one of the first questions is, how profitable will your business be in the short run? While we all expect our new business to be the next big thing, sometimes it takes a couple of years and this can affect our initial decision. Which leads to the next question how do we best handle those business losses and profits? If you anticipate a tax loss initially in your small business, then you may want to consider a pass through entity type such as a sole proprietor LLC or an S-corporation, to minimize your personal income tax liability at the time when controlling your expenses is at a premium. As always you should contact a tax professional to consider your individual tax profile, to help make the best decision for your small business As you can see the choices for your small business are many with a series of very individual responses to that determine the best strategy for you. Allow us to provide for you a free initial consultation that can set your small business on the right course.