In today's episode, I am briefly talking about the most popular business structures for entrepreneurs and influencers.
Profit/Loss filed on Schedule C of your personal tax returnPay yourself as needed based on profits of the businessPersonally liable for business obligationsLLC (Limited Liability Company) :
- Register with your state, requires paying a fee (usually minimal)
Obtain an EIN (a federal number assigned to your business, replaces the use of your social security number when it comes to business matters)Profit/Loss filed on Schedule C of your personal tax returnPay yourself as needed based on profits of the businessShielded from personal liability- Registration, as stated above, required
File a separate business tax return that would flow to your personal returnCould provide tax savings benefits, please consult with your tax professional or CPAMust pay yourself a reasonable salary Shielded from personal liability There are so many things to consider and the answer can vary from business to business, however; LLC is the most common structure that I see. Always consult with your tax professional or CPA to determine what structure is best for you and your business.
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