Monthly Archives: January 2014

Top 3 Considerations When Choosing a Business Structure

Choosing the right business entity for your new or growing company is one of the most important decisions that you as a business owner will make, since your decision will impact important things like compensation and taxation. If you’ve given more thought to your company logo than the structure under which your business will operate, you need to realize what a disservice you may be doing your company and yourself in the long run.

Generally speaking, there are three key considerations that will impact your choice of business entity:

Risk management. In this litigious society, just about any business can expect to endure a lawsuit or two. If protecting your personal assets from potential business liabilities is important to you, then you need to consider a limited liability company (LLC) or corporate structure.

Taxation. Business owners whose companies operate as a sole proprietorship, partnership or LLC report their business profits and losses on their personal tax returns and net profits are taxed accordingly. A company operating as a corporation is considered a separate tax entity, so owners of corporations do not report their share of corporate profits on their personal returns. Although corporations are more complicated structures tax-wise, the lower corporate tax rate may be attractive to some business owners. Plus, if you are an employee of your own S-Corporation, you only pay self-employment taxes on the salary you pay yourself and all other distributions are not subject to self employment taxes. The savings can really add up!

Complexity of management. Corporations and LLCs have greater complexity than sole proprietorships or partnerships, generally requiring more meticulous record keeping and rules that must be followed to keep the corporate structure (and asset protection) in place.

If you’re a small or mid-size business owner, call us today to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit. Normally, this session is $1,250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.

Protecting Your Small Business from Cybercrime

The Association of Certified Fraud Examiners has reported that companies with fewer than 100 employees lost an average of $155,000 annually as a result of fraud, identity theft and cybercrime. Here are some tips for protecting your small business from becoming a victim: Protect bank accounts and credit cards. First, be sure that your personal… Continue Reading

How to Make Sure Your Business Gets Paid and Doesn’t Get Stiffed by Customers

Sooner or later, you are going to have a client who doesn’t pay you for services or products provided.  Customers who do not pay are a fact of life for every business, so what are your alternatives?  Here are some options: In-house collections – Designate someone in your firm to contact the buyer personally to… Continue Reading

5 Legal Tips for Entrepreneurs

Are you thinking about launching a new business in 2014? If so, you need to set the right legal foundation or risk costly consequences down the road. Here are five legal tips for entrepreneurs: 1. Find a legal adviser. The best time to have a business lawyer is when you’re just starting out. He or… Continue Reading

How to Use Estate Planning to Leave a Legacy Beyond What You Own

Your estate is made up of everything you own, which includes your personal possessions as well as your home, a car, bank accounts, insurance, furniture and more. But your wealth is much more than just your financial assets. It includes your purposes, passions, family values, memories and stories that make up your personal legacy. The… Continue Reading