SmallBusinessNewz

Are you ready to go corporate? Have you chatted with a certified, qualified, and perhaps peer-approved tax professional about doing so?

One authority on tax structures thinks the LLC represents the hands-down best choice over corporations for a small business. Fortune Small Business cited Carter Bishop, a professor at Suffolk University Law School who helped draft the uniform LLC and LLP laws for several states, on why to file as an LLC.

Bishop said "there's virtually no reason why a small business should file as a corporation, unless the owners plan to take the business public in the near future." Most small businesses won't head down the public route, making the LLC a better choice in his opinion.

No less an authority than the Internal Revenue Service described the benefits of the LLC:

LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.

With the pass-through model, the LLC is not taxed as an entity. Money passes through it to its members, who are taxed on those receipts.

No blog post or even IRS web page should be one's complete resource or foundation for making such an important decision as organizing a business. The present expense of competent tax counsel means sparing oneself a possible future of losing money through excessive taxation.