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If you’ve decided to start your own business, you’ve got many critical decisions ahead of you—like choosing the right legal structure for your business. This video will help you decide if an LLC, C-Corp, S-Corp, or Sole Proprietorship is best for you.
If you plan to work for yourself as a freelancer, you might immediately start the process for an LLC (Limited Liability Company). However, as Mark Kohler points out in the video, that may not be the best choice since you’ll end up paying more in taxes. You need to think about a lot of things when starting your own business—and one of the first ones is how you will legally classify your business. Your main options are:
- LLC: combines the taxation of a partnership or sole proprietorship with the liability features of a corporation.
- Sole Proprietorship: a business run by one individual.
- C-Corporation: often involves shareholders
- S-Corporation: classification that avoids double taxation (to the corporation and shareholders)
Check out the full video for the positives and negatives of each option. For more advice on starting your own business, check out our Q&A on the subject, too.
How to Choose the Right Business Structure | Entrepreneur (YouTube)
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