There will be discussion about business structures and corporate business structures in this paper. There are three corporate structures that are general, chapter S, and Limited liability corporations. There are also tree business structures that are sole proprietorship, partnership, and corporation. Sole proprietorship is owned by one person and they have unlimited liability. They also have limited funds to start the company.
Some advantages for this type of business structure is that it is the easiest one, less paperwork, less costly o start, no specific taxes paid by company, and can own and sale company at any time (Livableness, 2013). Partnership is owned by two or more people, there is a written agreement (or should be), and is much like a general corporation. Advantages of this type of structure are that you do not have to register with the state so there is no fee for this and filing taxes is easy.
In the written agreement there should be talk about if something happened to one partner what would happen, how the income is split, and the duties of each owner. Corporation has three different structures that are General Corporation, chapter S corporation, and limited liability corporation (LLC). In General Corporation there is unlimited number of stockholders, it is owned by stockholders, they protect business creditors, and there is a separate legal entity. In Chapter S corporations there is special IRS tax status, used mostly by small businesses, provides advantages with taxes, and it is a type of General Corporation.
The advantages would be tax savings, business expenses are tax reedits, and independent life. In LLC it is like an S corporation, it adds flexibility, and there are fewer restrictions than in the other corporations. Considering all these structures, they are all different and should all be considered if starting a business so you can choose the structure that is best for the business you are opening. There is an advantage for all of them but need to be considered. It seems the easiest would be a sole proprietorship. Make sure to make a plan before opening your business.
