Cox Padmore Skolnik & Shakarchy LLP remains ready to serve you during the COVID-19 pandemic. We are prepared to provide you with continuous legal service and uninterrupted communication. We are also monitoring the legal impact of COVID-19 and we are available to discuss any questions you may have regarding the CARES Act, insurance coverage issues, including business Interruption insurance, or other issues. Please see below for a list of our practice areas. You may contact us by the usual means of telephone and email, which is encouraged at this time. We will promptly respond. Video conferencing is also available. In all, our firm remains committed to assisting you throughout this evolving period of legal, business, and safety concerns.
Cox Padmore Skolnik & Shakarchy LLP remains ready to serve you during the COVID-19 pandemic. We are prepared to provide you with continuous legal service and uninterrupted communication. We are also monitoring the legal impact of COVID-19 and we are available to discuss any questions you may have regarding the CARES Act, insurance coverage issues, including business Interruption insurance, or other issues. Please see below for a list of our practice areas. You may contact us by the usual means of telephone and email, which is encouraged at this time. We will promptly respond. Video conferencing is also available. In all, our firm remains committed to assisting you throughout this evolving period of legal, business, and safety concerns.

CALL US TODAY: 646-355-1648

Innovative Solutions To Complex Legal Concerns
  1. Home
  2.  | 
  3. Corporate & Business Tax
  4.  | How can I choose the right business structure?

How can I choose the right business structure?

| Aug 30, 2016 | Corporate & Business Tax

As a Manhattan entrepreneur, you face a wide variety of important decisions on a daily basis. This is especially true when first getting a commercial enterprise off the ground, which entails selecting the right business structure for your specific needs. Your business’s designation can have a range of effects, and can even dictate your annual tax burden.

The IRS provides descriptions on the different types of business structures in order to help you understand how to find the option best suited to your individual business. Those involved in partnerships (which can apply to two people or greater) are only required to file an informational return on a yearly basis. However, all those within the partnership must declare their earnings and debits on personal returns. Contributions made during the course of a partnership are typically intended to be equitable (i.e. each party will contribute an equal amount into the business, as well as receive an equal return on in investment).

Limited liability companies (LLC) are somewhat comparable to partnerships. However, some business entities are unable to be classified as an LLC, including companies within the insurance industry and financial institutions. LLCs are attractive to many business owners in that their personal liability will be greatly diminished when dealing with debt and other matters. Typically, LLCs must be comprised of more than one person, although this can vary from state to state.  

You may also be interested in designating your business as a corporation. Filing taxes as a corporation is a bit different from the first two options, as the corporation itself will be taxed. The tax rates that apply to corporations are also different, and in general corporations entail a lot more rules and regulations than other types of business structures. Although personal liability is minimal, your corporation can be held accountable for any issues related to its operation. The above is for informational purposes only, and as a result should not be taken as legal advice. 

Archives

FindLaw Network