Which Business Type is Right for You?
One of the fundamental initial decisions a new business owner faces is choosing the type of business entity that will be best for the business.
In choosing the most appropriate form of organization, a new Minnesota business owner will want to consider a variety of factors. These factors can be separated between tax and non-tax considerations.
The following posts help describe the pros and cons of:
Introduction
Non-Tax Considerations:
- complexity and expense of organizing the business;
- liability of the business owner;
- distribution of profits and losses;
- management control and decision making;
- financing startup and operation of the business;
- transferability of ownership interest;
- continuity of the business entity following withdrawal or death of an owner;
- complexity and expense of terminating or reorganizing the business;
- extent of governmental regulation.
Tax Considerations:
- Who is the Taxpayer?
- What Tax Forms Are Used?
- Tax Rates
- Tax Impact
- Selection of the Tax Year
- Compensation for Services
- Employment Taxes and Workers’ Compensation Insurance
- Employee Retirement Benefit Plans
- Fringe Benefits
- Capital Gains and Losses
- Net Operating Loss
- Estimated Tax Payments
- Disposition of Ownership Interest
The material contained in these posts been adopted or copied from materials entitled A Guide to Starting a Business in Minnesota, drafted by the Minnesota Department of Employment and Economic Development’s Minnesota Small Business Assistance Office.
