Starting your own business can be easier than you think.
Corporations
- Shareholder liability is limited to loss of amount invested in the corporation
- Shares can be easily traded
- Dividends are taxed at a lower rate than wage income
Small corporations (sub-S)
- Easier for individuals to administer
- Corporation is not taxed, individual owner pays taxes
- Liability protection
limited liability companieS (aka LLC's)
- Liability protection
- Combines the benefits of a partnership with those of a corporation
- LLC is not taxed, individuals pay taxes as though the LLC were a partnership
- Better protection from creditors and from bankruptcy trustees
limited liability partnerships (llp's)
- Like LLC's, except that the general partner is fully liable
- Great protection for limited partners from creditors and bankruptcy trustees