No. of Recommendations: 1
...I don't think liability will be a big concern currently, yet.

If you're selling food stuffs, I would imagine that liability would be a rather large concern. It would suck to lose all your assets because you had a bad batch of cherries (last year a bunch of people got sick at disney land (?) because of salmonella infected tomatoes).

There are lots of good sites that discuss the basics of the different company forms, but in a nutshell:

- sole proprietor: easiest, most risk, high SE tax
- partner: like sole proprietor, but with a partner (duh)
- C-corp: limited liability, have to pay corporate taxes, complex
- S-corp: limited liability, no corporate taxes, complex
- LLC: like an S-corp, but different =)

For most people, any of the non-C-corp ones make sense. It really depends on how much hassle you're willing to go through. There is no strong reason to go with a sole proprietorship, other than simplicity, over an S-Corp or LLC (that I'm aware of). There's just more paperwork and opportunity for IRS audits with S-Corp/LLC structures.

-Hook
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.