Talked to one of the subjects of my book the other day who said the only thing that’s new in their business is that they’ve become an LLC (from a sole proprietorship). That reminds me, it has been a while since we’ve gone over the different types of business structures. So here, from The Money Alert, is a quick and handy reference on the differences between Sole Proprietorship, S and C Corporations, and LLCs (Limited Liability Corporations).
These are essentially different for tax purposes. The type of structure you choose may change as your business matures. Many entrepreneurs start out as sole proprietors and then choose one of the corporation models over time. You need to discuss this with your CPA.
Thanks to Anthony Cerminero for the tip to this great chart.