The dream of becoming self-employed is one that many people hold dear. When it finally becomes a reality, it can be one of the most exciting moments in a person's life. But when the wrong business planning methods are put into place and the incorporation chosen does not present favorable tax treatment for the business owner and business in question, the happiness can end in complete business failure.
When you officially form your business and incorporate, there are many decisions to make. You must choose the correct form of incorporation to protect you from liability and that protects your business interests, you must choose the right corporate tax structure to help prevent you from unfair tax penalization, and you must choose an accounting method that helps you secure business capital from third party sources. In addition, there are many partnership agreements, contracts, and liability insurance considerations you must make.
Without the help of an attorney who specializes in business planning, you could be exposing yourself to personal loss with the wrong corporate structure and insurance. You could be creating expensive legal hassles by including the wrong clauses in your contracts and you could be missing out on tremendous tax benefits.
Don't try to understand the differences between LLCs, LLPs, C and S corps on your own. Instead, hire an attorney who can guide you to the right choice for you and your business.