This Business News Story Was Uncovered By Us From: http://feedproxy.google.com/~r/entrepreneurshiplife/feed/~3/EdxNs-r6iB0/
We hope this Editorial, that was exclusively found for you, to think of Tactics to add Energy into your own online business venture.
The type of business structure you choose can have enduring tax and legal implications thereby affecting your profitability and survival.
Each type of structure comes with its own set of advantages of disadvantages. Therefore you have to scrutinize each structure to ensure their advantages align with your business type and their disadvantages are what you can live with.
How to Choose the Right Business Structure
To choose the right business structure, you need to take three vital factors into consideration:
TaxLiabilityRecord keeping
The Common Types of Business Entities
Sole proprietorship
In this business structure, you are in complete control of your business and it’s the easiest to create. The major disadvantage of this form of business entity lies in its liability – you’re personally liable for all debts and actions of the business. In the eyes of the law, you and your business are one and the same. You can be sued for the actions of your business.
Another disadvantage is in raising finance. Most banks will reject your application for a loan. If you operate a low-risk business and just starting out and want to test your business idea, a sole proprietorship is appropriate for you. But it’s advisable you get an insurance cover to mitigate the risks you may be exposed to.
Partnership
When two or more people come together and agree to share the profits and losses of their venture, it’s called a partnership. In terms of liability, each partner is liable financially. A major advantage of partnership is that the partnership is not taxed, rather each individual is to file their tax report personally.
Corporation
Any entity that has been legally incorporated to carry out business is known as a corporation. A corporation is diff… Read More
Get tips on how to generate more money. An extra job, work from home and create numerous passive income streams that generate enough money. Get your side hustle on.
