The right classification for your business will have a huge impact on your tax payments. Selecting the right classification from the start of your business venture will save you headaches and unnecessary payments. Our team of small business accountants in Garner will help you make the right decision to maximize your profits.
Before your business begins taking clients or customers, you will have to decide what type of business you want you to start. There are many different types of businesses classifications, but selecting the right one can be challenging. Hiring a trusted small business accountant can help with this decision, and we are dedicated to connecting you with the best option for your unique needs.
An entity is the classification of the business’s structure of operation. A business can take a variety of forms and our Garner small business accountants can guide you on the best option so you create the right type of business.
Here are the types of entities your Garner business can be classified as:
The sole proprietorship is the simplest business form where it’s one person running a business and, from a tax perspective, there is no difference between the business and the individual. The owner includes the profits and deductions in their personal tax return, but they can also be held personally liable for business debts and other problems.
A corporation is a company or group of people who are authorized to act as a single entity and be seen as such in the eyes of the law. This means that a corporation is the creation of another person.
One of the most popular startup options that people select, an LLC, limits the liability of the owner (or owners) to where they are not personally held liable for debts accrued by the business. Taxes can be paid as a pass-through, meaning any profits will pass through to their personal taxes, or they can report taxes as a corporation.
Similar to a sole proprietorship but with multiple partners. In a general partnership, all partners operate jointly with unlimited liability. This means that their personal assets are liable to the obligations of the partnership.
A partnership of two people where one assumes personal responsibility and the second assumes limited liability. Crucially, in an LLP the full liability partners hold the rights to make decisions and changes to the business, while the partners who are limited in their liability are not authorized to make these changes.
By working with an accounting team that has your interests at the forefront, you can be assured you have a partner that will help you grow your business in Garner. Our goal is to provide opportunities for you to successfully manage your income, expenses and tax liability.
Find out how C.E. Thorn, CPA, PLLC has helped the Garner area startups and early stage businesses reduce their costs and limit their tax payments. Give us call at (919) 420-0092 or complete the online contact form to speak with a seasoned small business accountant today!