What You Should Know About Sole Proprietorships, LLC, S-corporations and C-corporations But Don’t. Companies that offer business filing services seem to provide plenty of information about different business structures right on their websites. But are you sure they provide you with all information so that you can make the choice that is most beneficial for you and not for them?

I’m not going to badmouth anyone, but let me ask you this question:

Most casinos offer Poker and Blackjack lessons right on the premises. But do they teach you how to play those games so you can win or just so you can spend more money at their establishment while thinking that you are going to win?

I’m sure you know the answer. So if you are making your decision about which business structure to form based on what you’ve read on a website of a company that offers to file your incorporation paperwork, then you are no better off that an amateur gambler at the casino table right after taking a lesson in gaming from that same casino.

Hello- My name is George Monaco, and I would like to discuss various business structures available in the USA, including Sole Proprietorships, Partnerships, LLCs, S-Corporations, and C-Corporations from a completely unbiased perspective.

Choosing the wrong business structure or mismanaging a business can result in higher taxes, weakened personal liability protection, and excessive paperwork and expenses. To help you avoid these pitfalls, I will discuss each of these structures in great detail. I will also discuss the differences between them so that you can decide which business structure is the best fit for your business needs.

Based on the feedback I receive from people who contact me at the number listed below, I am going to make some basic assumptions and ask you to ask yourself a few questions.

If you are reading this website, then you have probably been searching for this information on other websites. Unfortunately, you have likely already decided which type of structure to select for your business. Perhaps you are searching online and reading this page simply to reinforce your established opinion about which type of business structure to form before making the final decision.

Perhaps you have already decided that you want to go with an LLC, and you have been searching online for information about an LLC structure. On the other hand, you may have decided to go with a full-blown C-Corporation structure, and you simply wish to find more information about this particular structure.

Regardless of which option you are considering, how can you be sure you are making the right decision for your business?

Think about it. What made you choose one structure over the others? Was your choice a result of thorough research, or have you based your decision on the trend of what everyone else seems to be doing?

If you are considering forming an LLC, are you sure that the LLC is a better choice for you than the S-Corporation?

Can you clearly state what the major differences are between the two, speaking both generally and specifically for your business?

If you cannot state the differences, and if you do not truly understand the differences, then how can you decide to choose one over the other?

How can you make such a significant decision like this simply because "LLC" sounds fancier, or you have seen it posted on message boards more often?

However, what if there is some aspect of your business that actually requires a C-Corporation, but you mistakenly decide to go with an LLC or an S-Corporation?

Maybe you have heard something about double taxation with C-Corporations, but you really do not know what this means or how it will affect you. Do you simply dismiss this option based on the formidable phrase, "double taxation," alone? You probably do not know that you could actually pay fewer taxes with a C-Corporation?

Alternatively, you might have heard something about the lack of liability protection as a Sole Proprietorship, but how can you be sure it would be cheaper and safer for you to incorporate than to remain a sole proprietor with an umbrella liability insurance policy?

Did you know that there are huge differences in taxation between an LLC and an S-Corporation? This is true, but only if you structure your business in a particular way. If you mess up in the beginning, then you might end up actually owing even more taxes instead of paying less.

By the time you realize that you have made a mistake and picked the wrong business structure, it will be too late. Re-registering and fixing the mistakes at a later time, a time when it is too late, will be much more expensive, will involve much more paperwork, many more headaches, and possibly excessive legal fees than getting it right from the start would have.