Choosing the Right Business Entity
Choosing the Right Business Entity
By
Rosa Martinez
Professor Smith
English 315
February 24, 2012
TRANSMITTAL
TO: Small Business Owners
FROM: Rosa Martinez
DATE: February 24, 2012
-------------------------------------------------
SUBJECT: Choosing the Right Business Entity
-------------------------------------------------
Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore, the report explains in full details the advantages and disadvantages of each business entity, and how those factors could fulfill the needs of each particular individual.
To ensure that the right structure is selected, I will be glad to further discuss the details with each one of you, in case that you have any questions.
Attachment
TABLE OF CONTENTS I. Introduction A. The Problem: Higher tax rate with the wrong entity
The Method Used
Entities Comparison A. Sole Proprietor
Advantages
Disadvantages
Sub-Chapter S Corporation 1. Advantages 2. Disadvantages
Limited Liability Company 1. Advantages 2. Disadvantages
Conclusion: All Business Owner Have Their Unique Findings for their Right Entity * * * * * * * * * *
Executive Summary
When starting a business is very essential that the correct business entity is chosen to properly plan for a lower tax bracket. Many small business owners are clueless when it comes to choosing the correct entity structure for their business. In this report we will analyze the pros and cons of three (3) different entities that favor the small business owners. We will get into details as far as to receiving refunds from the Federal government in order to help ease the startup cost of the business.
The Problem: Higher tax rate with the wrong entity
Many ambitious small business owners have to decide to choose from business
By
Rosa Martinez
Professor Smith
English 315
February 24, 2012
TRANSMITTAL
TO: Small Business Owners
FROM: Rosa Martinez
DATE: February 24, 2012
-------------------------------------------------
SUBJECT: Choosing the Right Business Entity
-------------------------------------------------
Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore, the report explains in full details the advantages and disadvantages of each business entity, and how those factors could fulfill the needs of each particular individual.
To ensure that the right structure is selected, I will be glad to further discuss the details with each one of you, in case that you have any questions.
Attachment
TABLE OF CONTENTS I. Introduction A. The Problem: Higher tax rate with the wrong entity
The Method Used
Entities Comparison A. Sole Proprietor
Advantages
Disadvantages
Sub-Chapter S Corporation 1. Advantages 2. Disadvantages
Limited Liability Company 1. Advantages 2. Disadvantages
Conclusion: All Business Owner Have Their Unique Findings for their Right Entity * * * * * * * * * *
Executive Summary
When starting a business is very essential that the correct business entity is chosen to properly plan for a lower tax bracket. Many small business owners are clueless when it comes to choosing the correct entity structure for their business. In this report we will analyze the pros and cons of three (3) different entities that favor the small business owners. We will get into details as far as to receiving refunds from the Federal government in order to help ease the startup cost of the business.
The Problem: Higher tax rate with the wrong entity
Many ambitious small business owners have to decide to choose from business
Cited: Jackson, R. D. (2011). Choose the Right Legal Structure for Your Business. Portland : Law Offices of Ronald D. Jackson Mezzullo, L. A. (2010). Limited Liabilities and Family Entities. In L. A. Mezzullo, Limited Liabilities and Family Entities (pp. 79-95). Illinois: ABA Publishing Unknown. (2011, 02 24). Choose Your Business Structure. Retrieved 02 24, 2012, from Entreprenuer.com: http://www.entrepreneur.com/article/38822-1