Test Your Structural Integrity
Why your business structure could be eating away at your company's bottom line
The structure of your business--whether it's a sole proprietorship, an LLC, or an S or C corporation--can directly affect your business's financial health. You've probably already weighed legal and other matters when settling on a business structure, but tax considerations can be just as essential--and can dip into your bottom line if you're not careful. Just ask Beth Shaw, president and founder of YogaFit Training Systems Worldwide Inc. The midsize company, with five million in sales, started out as an S corp, but "I wanted more levels of protection, so we switched to a C corp," Shaw says. Problem was, when tax season came around, that so-called protection translated into a 25 percent jump in taxes. "Now we're planning to go back to being an S corp."
Continue reading this article - and everything on Entrepreneur!
We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.
Entrepreneur Editors' Picks
-
Crypto Doesn't Have to Be Serious. Just Ask This Comedian Who Organized a Conference About Failure in the Industry.
-
Want to Succeed? Turn Your Fixed Mindset Into a Growth Mindset.
-
Google's CEO Is Asking Employees 3 Simple Questions to Boost Productivity
-
'Greatest Storyteller Wins.' Katy Perry on the Surprising Link Between Pop Stardom and Entrepreneurship.
-
How to Unleash Your Creativity and Transform Your Marketing Strategy
-
The 5 Personalities You Meet in a Coworking Space
-
'Man's Best Friend' — and Investment: The Thriving Industry of Pet-Related Franchising