Different Types of Business Organizations

business organization types: hey you yeah you I heard you're starting a business well I guess I should start by saying congratulations for watching the right video that is one of the most important decisions when starting a business is what form of business organization you will file well thank goodness we're here to walk you through the four different types of organizations sole proprietorship LLC C Corp and S Corp we want you to sit

back relax and let us tell you about the ways you can run a safe and legal business with pride starting with a sole proprietorship so what is a sole proprietorship well for one it's the simplest form of a business entity the owner owns every asset and is personally liable for all obligations this includes any company debt or legal issue since there is no limited liability I would recommend ensuring your business to help mitigate any

risk as sole proprietorship is a pass-through entity for federal income tax purposes this means the owner's personal leave taxed rather than the business itself the best part is you don't even need to be a US citizen the next type of business to consider is a limited liability company otherwise known as an LLC this form of business is also a pass-through entity for tax purposes once again you don't need to be a US citizen LLC's

are owned by one or more people called members each member has limited liability based on the amount of his or her own investment this provides legal protection for the members personal assets before I take a crack at the two different forms of corporations does anyone actually know what a corporation is a corporation is a separate legal entity with constitutional rights owners are referred to as shareholders and are responsible for electing a board of directors who

directly oversee corporate affairs the shareholders have limited liability up to the amount of their investment corporations are required to follow internal and external formalities and obligations like filing annual reports or paying annual fees when forming a corporation it is automatically considered a c-corp unless otherwise elected as an S corp the main disadvantage of a C Corp is the double taxation at the corporate and shareholder level so technically the income is stacks at the business enemy level

and then tax the second time on the shareholder personal income level but once again you do not need to be a US citizen in order to elect S Corp status with the IRS the shareholders are required to be a US citizen for tax purposes s corpse actually benefit from being passed through entities therefore making it more attractive for those money hungry investors okay so what do you say do you now feel like your fortune

500 company is underway I hope I was able to differentiate these four types of business organizations on the digital display well that's enough rhyming for now remember if you ever feel like you forgot what I said you're a whine button is down below and now you're ready to start your business

See more here: https://www.youtube.com/watch?v=tUsoFmvwHS0

business organization types

business organization types: hey you yeah you I heard you're starting a business well I guess I should start by saying congratulations for watching the right video that is one of the most important decisions when starting a business is what form of business organization you will file well thank goodness we're here to walk you through the four different types of organizations sole proprietorship LLC C Corp and S Corp we want you to sitback relax and let us tell you about the ways you can run a safe and lega...