If you are thinking about starting a business, or run a part-time business that brings in sporadic earnings, you may be asking yourself-Why go through the legal hassles of registering-. Depending on your stat's business and tax laws, you may not even be required to register. However, regardless of your profit or size, there are big advantages to register as a business' including liability protection, tax deductions, and financial assistance.
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.