Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 23

• The formalities and expenses involved in establishing the business structure Below is a review of the most common legal structures for businesses and some of the advantages and disadvantages of each. NOTE: The decision of what legal structure to select may be very complicated — it is strongly recommended that you consult a business attorney and tax professional before deciding which structure is best for you and your business. Sole Proprietorship or Sole Proprietor DBA A sole proprietorship is a business structure with one owner. A majority of small businesses in the United States are sole proprietorships because it is the easiest to set up and maintain. If you do nothing to choose a legal structure you will default to a sole proprietorship because there is no paperwork to file apart from additional schedules on your personal income tax returns. However, if you plan to operate the business under a name that is not your personal name, then you must file for an assumed name “DBA” (doing business as…) certificate with the county clerk of the county where your business is locat VBFW&R2Vv6W&F&WGvVVFR'W6W72BFRvW"6R&&WF'6F2V2FB26R&&WF"RvfRVƖ֗FVB&W76&ƗGf"FRƖ&ƗFW2BFV'G2bFR'W6W72f"7F6RbFP'W6W726BWvVBFfVF"FBfVF"7VRRFfGVǒB6V2FB6P"76W2bFR'W6W72&R66VFVBf"W"W'6F&WGW&GfFvW0V7BWV6fRFW7F&Ɨ6&fG2&RFVBǒ6RBFRvW.( 2&FPF6GfFvW0vW"2VƖ֗FVBW'6Ɩ&ƗGf"'W6W72FV'G0vW'62Ɩ֗FVBFRW'6'FW'60FW&R&RGvGW2b'FW'63vVW&'FW'62BƖ֗FVB'FW'62vVW&'FW'606֖"F6R&&WF'6W6WBFBB2Gv"&RvW'2ƖR6R&&WF'6B2V7F6WBWBFFW&R2W'v&FfRVW72R&RW&FrFR'W6W72VFW"RFB2FffW&V@g&FRW'6W2bFRvW'2v666RRǒVVBFfR( D$( Fr'W6W72>( b6W'Ff6FPvFFR6VGvW&RFR'W6W7226FVBB26vǒ&V6VFVBFBFR'FW'27&VFR'FW'6w&VVVBFBFG&W76W2&W2&W76&ƗFW2B6FvV6W2&FW"FfBF6w&VVVBB6fƖ7@&WGvVVFR'FW'2vVW&'FW'6FRvW'2fRVƖ֗FVBƖ&ƗGf"FRFV'G2bFR'W6W72F2V2FBWfVFVvFR'FW'26&RFR&fG2WVǒV6'FW"2R&W76&Rf"FV'G0bFR'W6W72Ɩ֗FVB'FW'62R"&RvVW&'FW'2BR"&RƖ֗FVB'FW'2FRvVW&'FW"26G&BW&FRFR'W6W72B&RRƖ&Rf"FV'G2bFR'W6W72FRƖ֗FVB'FW"2F@'F6FRFRW&FbFR'W6W72BFV"W'6Ɩ&ƗG2Ɩ֗FVBFFV"6G&'WFFFR'FW"Ч6G6ǒƖ֗FVB'FW"2fW7F"ख&FW"Ff&Ɩ֗FVB'FW'6֖6vRW7BfR6W'Ff6FRbƖ֗FVB'FW'6vFFR֖6vFW'FVBbƖ6V6rB&VwVF'ff'2$bƖ֗FVB'FW'6FW2Bfr7FGWF'&WV&VVG2Bv&RG&VFVB2vVW&'FW'66R6VB67VBvFGF&W&Vf&R7&VFrƖ֗FVB'FW'6GfFvW0vVW&'FW'62&RV7BWV6fRFW7F&Ɨ6V6'FW.( 26&RbFR&fG22ǒFVB6Pw2f"vW'6'&RFRFfGVF6GfFvW0vVW&'FW'2fRVƖ֗FVBW'6Ɩ&ƗGf"'W6W72FV'G0'FW'62Vvǒ&W76&Rf"FR'W6W727G2bV6'FW vVW&'FW.( 2FW&W7BFR'W6W726ǒ&R6B"G&6fW'&VB'66VBb'FW'0#