Rob was asked; What is the best business structure for my small business?
A Limited Liability Corporation will provide you with the protection of a corporation while allowing you the simplest accounting and compliance. The negative to this model is all the income goes directly to personal tax return which can eat up all your profits in taxation if not planned properly. You can go with an S-Corporation but the income still goes to your personal tax return, and it is more complicated for accounting and compliance. These are both good options while you are small but once your company has built a net income of over $100,000 or equipment over $50,000; you should consider a C Corporation as the parent holdings company with LLC’s as the operating company and a separate one to hold the assets. While this model does cost more in accounting and compliance, it will save you through tax strategies and most importantly reduces legal liabilities.
Robert Ritch located in Franklin TN where he is an investor and expert in business development.