If you’re starting your own business or working as an independent advisor, chances are that you’ll end up saving a lot of tax dollars and covering your assets by setting up a corporation. The question comes down to which legal entity and corporate structure is right for you?
We always recommend speaking to a CPA, and probably even an attorney, to ensure you’re setting your business up right. A CPA can help guide you through the pros and cons of setting up a corporation. An attorney will help ensure you have all of your legal documents in order and can even help you file your business properly, according to federal, state, and local laws.
Our advice?
Do a little research and try to obtain a basic understanding of incorporating a business. You can easily search Google for basic information, but the CPA is going to be the person who walks you through your personal and professional asset allocation and explains the differences between incorporating your business or running it under your own name.
We don’t expect you to get a business degree, but you should at least understand these terms—
- Sole Proprietorship
- Doing-Business-As (DBA) / Fictitious Name
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
- Partnership
- S-Corporation
- C-Corporation
It is also wise to try working with a CPA and/or attorney who has an understanding of your local and state laws, along with travel/tourism law. You can always Google those professionals, ask a colleague for a recommendation, or find a list of some well-known travel industry attorneys on our complimentary Travel Supplier Directory.
