I remember being thoroughly confused when we first decided to incorporate. We had rental properties, an online business, and a ton of tax related concerns to worry about. It seemed that of the 15 people I spoke to for guidance, they all had differing opinions.
The best advice I can give it to read and do homework. Their are pros and cons either way. Forbes tries to help with their article that does a good job of explaining your options.
Read on at ForbesWhen you start a business, you must decide whether it will be a sole proprietorship, partnership, corporation or limited liability company (LLC). (If you need a brief explanation of the main business types, see: " Types of Ownership Structures".)
Which of these forms is right for your business depends on the type of business you run, how many owners it has and its financial situation. No one choice suits every business: Business owners have to pick the structure that best meets their needs. This article introduces several of the most important factors to consider, including:
-- the potential risks and liabilities of your business
-- the formalities and expenses involved in establishing and maintaining the various business structures
-- your income tax situation, and
-- your investment needs.
