There are many things to consider when starting a business. You need to plan and prepare which takes a lot of time. You have to research what important things you need to know. One of the aspects you need to research is the type of business.
You have to know the type of business and the effects of it on your taxes and liability. There are many types of business entities and you need to select the best one that suits your industry and tax circumstances.
Sole proprietorship is the best option if you are the only business owner. Setting up a sole proprietorship business, you need to just register your business for tax and legal purposes, and you will also keep all the profits after taxes but are held liable for all losses and damages.
Next is Partnership if you have a partner on your business. There is General Partnership and Limited Partnership. General Partnership is the basic entity while Limited Partnership allows a non-managerial partner to limit his or her liability.
Another option is Corporation, in which you as a business owner and your business becomes a separate legal entity. Corporations limit shareholder liability, but they also bring about more taxes. Depending on your industry, all of these options may not be available.
Contact Sage Solutions Philippines for business consultancy services. Just follow the link: https://www.sagesolution.com.ph/contact/
Reference: Quickbooks website
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