Determining the classification of your business is crucial, as it will have a huge impact on your tax payments. Selecting the classification from the start that is most beneficial to your business will save you both headaches and unnecessary payments.
Our team of small business accountants will assist your Holly Springs business in choosing the most ideal classification that will maximize your profits.
During the process of launching your company, you will inevitably have to decide what type of business you want to start. There are several different types of businesses classifications, but selecting the right one can be challenging. That is why hiring a trusted small business accountant to provide expertise on the matter is a wise step to take. Our team of CPAs is committed to creating a comprehensive strategy that best benefits your business, starting with your business classification.
An entity is the classification of the business’s structure of operation. A business can take a variety of forms, which is why our small business accountants can provide assistance with determining the best option for you and your Holly Springs business.
Here are the types of entities your business can be classified as:
The sole proprietorship is the simplest business form. Under a sole proprietorship, one can operate a business without it being a legal entity. It simply refers to the fact that the person who owns the business is personally responsible for its debts.
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 partners while giving them options with their taxes. These partners have the option to pay their taxes as an individual or 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.
Generally used by industry professionals requiring a license. Most of the time, these people are subcontractors who hold a state license.
Generally a charitable organization such as a church or charity. In certain instances, these organizations can be exempt from taxes. Generally, these are not recommended for small businesses. Another reason is if the business needs to claim a loss, it is more beneficial to claim those as an individual rather than a corporation.
Having an experienced professional to help you draft a comprehensive plan to help your business succeed is extremely helpful. With our accounting services for Holly Springs, you can be assured that you have a partner that will help you advance your business. Our goal is to provide opportunities for you to successfully manage your income, expenses and tax liability.
Contact our office today to discover how C.E. Thorn, CPA, PLLC has helped several Holly Springs area startups and early-stage 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 well-versed small business accountant today!
