• What's the cheapest business entity?
  
  
• What's the cheapest business entity if I have a partner?
  
  
• What's a limited partnership?
  
  
• What's a S Corporation? (Section C)
  
  
• What's a Corporation? (Section C)
  
  
• What's a Nonprofit Corporation?
  
  
• What's a limited liability Company?
  
  
• What do I need to know as to what type of business entity to become?
  
  
  

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• What's the cheapest business entity?
  
  The cheapest and least complicated business entity is the Sole-Proprietorship. This business type is simple and inexpensive to create and operate. The owner reports profit or loss on his own income tax return. The owner is also liable for business debts. This is an appropriate business entity for an advocacy service. Speak to your accountant before making a decision.
  
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• What's the cheapest business entity if I have a partner?
  
  Consider a general partnership. It is inexpensive and simple to operate. Taxes and debt are the responsibility of the partners. This is an appropriate business entity for an advocacy service because it allows for greater productivity. Read our partnership guide and speak to your accountant before making a decision to become a partnership.
  
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• What's a limited partnership?
  
  A limited partnership is a formal business relationship between two or more individuals. These individuals share costs, debt and liability. A partner in a limited partnership is limited in liability for the business debts if he/she did not participate in management. A limited partnership is more expensive to create, and is used primarily in real estate. This is an appropriate business entity for an advocacy service. Speak to your accountant before making a decision.
  
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• What's an S Corporation? (Section C)
  
  Owners of a (Section C) S Corporation have limited liability for business debts. Owners report their share of corporate profit or loss on their personal tax returns. Owner can use business losses to off-set income from other sources. S Corporations are more expensive to create and there are rigorous paperwork and reporting requirements. This is an appropriate business entity for an advocacy service. Speak to your accountant before making a decision.
  
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• What's a Corporation? (Section C)
  
  Owners of a (Section C) Corporation have limited liability for business debts. Owners usually share profits, deduct fringe benefits and report to dhare holders. C Corporation owners can also use a variety of tax reducing strategies. It is more expensive to create and there are rigorous paperwork and reporting requirements. This is an appropriate business entity for an advocacy service. Speak to your accountant before making a decision.
  
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• What's a Nonprofit Corporation?
  
  Nonprofits don't pay any income taxes, and contributions to these entities are tax deductible. Fringe benefits can also be deducted as expenses. Tax advantages are limited to organized charitable groups. A nonprofit is not appropriate for most disability advocacy services. It limits public perception of who you help, which can negatively impact your bottom line.
  
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• What's a limited liability Company?
  
  The owners have limited personal liability for business debts even if they participate in the management of the company. owners can choose to be taxed as a partnership or as a corporation. A limited liability company is expensive to set-up and there are reporting requirements. Different laws in different states can make this entity more complex to govern.
  
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• What do I need to know to make a decision as to what type of business entity to become?
  
  In the start-up phase of an advocacy service, there are many important decisions to make. One of them is to determine what type of business entity to become. The more inexperienced you are, the more we suggest that you begin you company as a Sole Proprietorship. It costs less than $100 to register and there are no reporting requirements. Handling the books is exactly like handling your own personal bank account. If you're considering any other business entity, seek advice from your financial advisor.
  
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