|About the Book|
Just about the first thing you should consider before deciding to start or purchase a business or start one is the legal form you will be operating under. There are basically seven choices:Sole proprietorshipPartnershipLimited partnershipCorporation.Limited Liability CorporationCo-operative.Nonprofit organization.Each has a number of advantages and disadvantages. Every state regulates these types of businesses in their own way. The Federal Trade Commission regulates franchises as well as the state governments.The type of business you decide to form determines how simple or complex it will be to run, taxes you will pay, control of it and liability for the business from your personal assets.Under all the major forms of business (sole proprietorship, partnership, corporation), wages and salaries paid to employees are subject to withholding of state and federal income taxes, Social Security (FICA) taxes, and unemployment taxes so there is no advantage to any one in terms of these issues.Nolo Press (950 Parker St., Berkeley, CA 94710, 800-992-6656, nolo.com) publishes books about how to set up different manner of businesses. You might find such books at #346.73 at the library.