Comments on Small Biz Survival: When NOT to be a Sole Proprietorship: Forming an L...

Patrick, thanks for coming back after a year for a...

2011-07-06T14:47:08.199-05:00

Patrick, thanks for coming back after a year for a follow up comment. I'm glad to see you back. As business owners, we are ultimately responsible for every decision.

Actually, I would rather trust my accountant and a...

2011-07-03T23:31:55.111-05:00

Actually, I would rather trust my accountant and attorney than make the wrong choise. My "Make my own decision" choice would be wrong.

Patrick, know what you plan to do with your busine...

2010-04-20T22:36:06.231-05:00

Patrick, know what you plan to do with your business, review the options and advice, and make your own decision. That's my advice. Good luck!

Both my lawyer and my accountant said that most pe...

2010-04-19T02:01:30.110-05:00

Both my lawyer and my accountant said that most people form LLC's when they should REALLY be forming the Sub S Corp. I'm glad I have that advice and will do so sometime this year.

This was incredibly helpful. Thank you!

2009-03-20T23:17:00.000-05:00

This was incredibly helpful. Thank you!

J.R., thanks for offering this additional info. I'...

2008-05-13T18:50:00.000-05:00

J.R., thanks for offering this additional info. I'm glad you shared your expertise.

Becky, this is good information about business str...

2008-05-13T18:46:00.000-05:00

Becky, this is good information about business structures. However, there is a return necessary for all entities. A Subchapter S corporation must file an 1120-S. This return requires no tax payment, but provides information to the IRS on the amounts passing through to the owners. Most states have reporting requirements as well. There is a real benefit to the Sub-S in that the income does not require self-employment tax payments.

Laura, thank you. Glad you found some value. Best ...

2008-05-08T18:09:00.000-05:00

Laura, thank you. Glad you found some value. Best of luck to you and your business!

Excellent summary of the various structures of bus...

2008-05-08T18:03:00.000-05:00

Excellent summary of the various structures of business and when to choose each. I just formed an LLC for my business for tax purposes. Thanks for the great information!

Ben, thanks! While most of us can't predict taxes ...

2008-05-07T17:33:00.000-05:00

Ben, thanks! While most of us can't predict taxes and selling when we first start our business, it's quite possible that after some time, you'll start to run into tax issues that would be better managed as an LLC or S Corp. Or, you'll realize you are planning to sell in a few years or even sooner.

Luckily, in the US, it's quite possible to create a new form for an existing business.

Thanks for taking time to comment!

Very informative article! Although I'm not sure th...

2008-05-07T16:52:00.000-05:00

Very informative article! Although I'm not sure that "Taxes" and "Selling" are good factors to consider when considering a sole proprietorship because it is imposible to accurately predict them. However, you seemed to provide a wealth of knowledge in a pretty short post. Thanks for the refresher!