What kind of structure is right for a home based business?
|I am in the process of just setting up for a new business opportunity I am working with, with a partner. We are struggling with the concept right nowl; how do we format? Obviously it can't be a sole priproitorship because there are two of us and there is very likely to be three. So LLC, S corp, C corp? Terms start getting banding around about what you should go into. In that particular case I can't tell you if an LLC or a S corp is the right way to go. I don't even know for myself yet which we'll be doing. What I do know is that this is where you need expert advice. Just going onto the web and doing some research about the differences between S corp and LLC probably is not enough. I am personally working with a firm that specialized in Start-ups and helping in the accounting. And they are walking us through the process of deciding where we are and how we are going to grow the business and actually the end game for the business is where we want to sell that is where we want to just liquidate it to move out, where a partner will move out. We don't know, we have to come up with the end game for that particular company to help us set that up. At that point in time we can make a decision whether an LLC or an S corporation is the best entity for us to do. So that is an evolving process.|