Starting a New Business in the Chicago Area? Talk with Us First!
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure also allowed by state statute.
Here's a brief overview of each:
SOLE PROPRIETORSHIPS
A sole proprietorship is the most basic type of business to establish. You alone own the company and are responsible for its assets and liabilities.
PARTNERSHIPS
There are several different types of partnerships, which depend on the nature of the arrangement and partner responsibility for the business.
CORPORATIONS
A corporation is more complex and generally suggested for larger, established companies with multiple employees.
S CORPORATIONS
An S corporation is similar to a C corporation but you are taxed only on the personal level.
LIMITED LIABILITY COMPANY (LLC)
An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
It's important to keep in mind that each type of business entity carries different legal and tax implications. That's why, it's important to meet with us before you form your new business. Claremont will help you weigh all of the business formation considerations and choose the structure that's right for your new business.
Based in Rolling Meadows, IL, Claremont Management Corp. offers expert accounting, tax planning and tax preparation services to businesses and individuals.
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Give us a call today at (847) 398-7010 or submit the form below to schedule your free consultation.