One of the most common questions I get from entrepreneurs is how they should initially set up their business. Should they incorporate? Will a sole proprietorship work to get started? Can they change forms later? What are the tax implications?
I will answer these questions with a three-part series discussing the most common forms of business used by entrepreneurs: the Sole Proprietorship, the Limited Liability Company, and the S-Corporation. For each, I will explain what it is, list the pros and cons, and explain some of the tax considerations.