Your Tax Place, Inc. - Tax Savings Strategies

 Sole Proprietor, LLC or Corporation Which is the best for your business? As a business owner, you should be aware of what each type of business entity offers in terms of taxes, liability protection, and control over the business. The easiest and most common business type is the Sole Proprietorship. As a sole proprietor, you automatically get the new (and misunderstood) responsibility of "self employment" taxes. Sole Proprietorship You have NO LIABLITY protection for your personal assets in case of a lawsuit You have COMPLETE CONTROL over how to run and manage your business There are not usually any start up fees required Most new businesses start out this way until they get a better education about the other options. LLC business type The LLC is also very popular choice among new business owners, but it is not always chosen for the right reason.  Some people claim that there are more tax advantages than a sole proprietorship. However, the truth is, an LLC does not differ

  A lot of people that I talk to ask me, " Who will give my business credit ?". Having business credit will help you to purchase the tools, equipment, and supplies that you may need to help you to grow your business.  But, in order to get business credit, your business needs to  Be Separate  from you.  Also, the business needs to have a proven track record of purchasing items on credit and repaying them ON TIME and/or IN FULL each month.    In other words,  Have its own Credit Score. As you know, a Credit Score is given to people/businesses and is attached to the NAME and TAX ID of the person/business for all to review and decide whether or not more CREDIT can be issued. First Step If you want to establish business credit and have established your business as a sole proprietor, the FIRST STEP  you need to take is to Separate   You from Your Business.   You can do this by forming a separate legal entity such as a Corporation or an LLC to allow your business to