You have already seen that you have a number of possible options for creating a business entity, and the choice of business entity ultimately comes down to a question of your individual needs.
You should consider the advantages and disadvantages of each type of business entity and determine which type better fits your business. For example, the choice of business entity affectswhether the owners of the business will have personal liability protection from a lawsuit againstthe business. The type of business entity also affects how the business is managed and how thebusiness pays taxes.
Some questions to consider when determining which business entity is right for your business include:
• Do I want to protect my personal assets from claims by those who I do business with?
• Will I manage this company alone or with other people?
• Will I have large amounts of expenses that may be tax deductible?
• Will I have investors?
• Do I have a goal of becoming a large company?
• Will my primary business involve offering professional services?
• Will my primary purpose be charitable work?
• Does my tax advisor or accountant have a preference for the type of entity I wish to