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Among the first choices you will need to make as a new business owner is figuring out what form of business system you will file as. Because you will possibly be operating under the same structure for the rest of the life of the business, understanding which type to file can be a tough decision. There are a wide range of different state filings available for businesses these days. Make sure that you choose the file the best one as it can make a huge difference for the financial future of both you and your business. To make your task simpler, below you will learn the major benefits of each variety of state business filing.

If you do not define your business with any other type of structure then it will be considered a sole proprietorship by the state. The main perks of sole proprietorships are they are easy to setup, have few filing requirements, and your business income is taxed in addition to your personal income. However, this structure is not a separate legal entity from you as an individual, consequently you will be personally liable for any debts your business incurs.

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A partnership is where you and a minimum of one other individual are joint owners in the business. One of the most vital things to be aware of is that you will be individually liable for the actions of your partners and employees. Some of the benefits of arranging a partnership include the ability to join resources and knowledge with someone else. For instance, you might know the way to run a trucking company, but your partner might know how to access capital.

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Corporations have a number of considerable benefits over partnerships. One of the most important of these is limited liability. What limited liability means is that the corporation is a completely separate legal entity from you as an individual. If for example, the business took out a loan in order to invest in a new rig and was unfit to meet the payments, your lender could not pursue you individually for the payment owed. Sub chapter S corporations are a relatively new form of business structure that has proved to be popular with many small business owners. A sub chapter S corporation is treated the same as a standard corporation in terms of limited liability. However, for tax purposes, you are treated equally as a partnership. This helps to avoid the problem of double taxation which occurs with standard corporations.

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Limited liability companies are one of the most flexible form of business structures available. While limited liability companies do share a number of the same features, as corporations they stand out. Like a corporation, they offer limited liability protection. On the other hand a limited liability company can consist of a single owner, in which case they are taxed as if they were a sole proprietorship. You can additionally have multiple owners for your limited liability company. Among the other benefits is that they are generally much easier to setup than corporations and have fewer regulatory criteria. In a limited liability partnership you are sheltered from the actions of these other parties. Additionally the business will be structured under the standards of normal partnership. This is generally a better choice than a standard partnership unless the business you are running is very small and has no debt.

We Provide Company Filing Services to all Fifty States

  • Alabama LLC Filing
  • Arizona Limited Liability Partnership
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  • Kansas Corporation Filings
  • Louisiana LLC Filing
  • Maryland Corporation Filings
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  • Minnesota LLC Filing
  • Nevada Corporation Filings
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  • South Carolina Limited Liability Partnership
  • South Dakota Corporation Filings
  • Texas Corporation Filings
  • Virginia Limited Liability Limited Partners
  • Washington Limited Liability Limited Partners
  • Wisconsin Limited Liability Partnership

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