Starting a Business

One of the biggest questions you first face is what type of business entity do you want to be. You have 5  choices: sole proprietorship, C corp, S corp, partnership, or LLC. There are advantages and disadvantages to each type which are too complex to really get into in this short blog. All of the choices except the sole proprietorship require separate tax forms each year, fees to set up, and annual state registration fees of usually $50. In other words there is a lot of annual care and feeding that goes into the more complex structures. I recommend that for most start ups you go with the simplest structure, the sole proprietorship and move on from there if you survive and get bigger .  With the sole proprietorship you just file a schedule C with your form 1040 each year. My philosophy is to keep it simple if at all possible.