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Types Of Business Entity For A Business

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Of all the choices you make when starting a business, one of the most important is the type of business entity you select for your company. Not only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. It 's not a decision to be entered into lightly, either, or one that should be made without sound counsel from business experts. “Kalish says it 's important for business owners to seek expert advice from business professionals when considering the pros and cons of various business entities”. The business entity I have chosen for my business is sole proprietorship. I don’t want to be responsible if someone else makes a bad chose for the company. I want to run my business my way. If anything goes wrong it is completely my fault not anyone else’s. Types of Business Entities The type of business entity you choose will depend on three primary factors: liability, taxation and record-keeping. Here 's a quick look at the differences between the most common forms of business entities: •A sole proprietorship is the most common form of business organization. It 's easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business. •A partnership involves two or more people who agree to share in the profits or losses of a business. A primary

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