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BUSINESS FORMATION

Cesca Unlimited offers a number of services to help you meet your business needs. For example, we can provide advice on the best way to structure your company or change the structure based on how it is growing and what type it may become. Why is it so important to select the right business formation? 

In general, there are three critical areas for consideration in selecting the right tax structure for your business.

 

These include:

  • Risk. It is best to understand that all businesses carry some degree of risk. However, business owners will want to choose a structure that protects their personal assets from business liabilities.

  • Taxation. The choice of tax structure for your small business can have a huge impact on how much you pay in taxes. Some businesses operate as sole proprietorships, partnerships, and LLCs also known as pass-through entities. As businesses grow, some convert to C and S corps to further capitalize on tax strategies that may provide even more benefits.

  • Complexity. You may be surprised to know that most small businesses in the US operate as sole proprietorships. This means they are run by an individual and do not require any formalities, like registering with state authorities or paying fees every quarter. From the simplest form of business to the most complex, businesses should still follow certain guidelines such as maintaining accurate books, remaining compliant, and protecting against certain liabilities or risks.