Amazon CPA's guiding national clients through business formation
Starting a new business is an exciting prospect. Whether you have a storefront to sell your goods and services or work mainly off the internet, taking the correct steps when starting your new venture is important. Ebiz Accounting is an experienced team of financial experts that specialize in Amazon-based business formation. The facts are similar in the sense that whether you are a storefront or an internet-based business, picking the right entity is the first step to a new future. Working with countless clients over the years has allowed our staff to acquire the experience necessary to provide the highest quality financial guidance to prospective and established Amazon business owners across the United States. If you need high-caliber financial advice, you can trust in the skill and knowledge of Ebiz Accounting.
Picking the right business entity
Each business entity has its positives and negatives. Each entity is vastly different from each other and knowing the difference is essential for financial planning. Our staff can assess your situation, guide you through the options and help you decide on the best course of action. The following are examples of business entities found in the United States:
- Sole Proprietorships
- S Corporations
- Limited Liability Company (LLC)
What is the difference between business entities?
Simply put, each entity functions differently for liability and tax purposes. Knowing the difference is essential.
Sole Proprietorship: This is the most basic type of business structure to establish. You are the owner of the company and are responsible for all assets and liabilities. Some of the advantages of a sole proprietorship include easy and inexpensive formation, complete control over decisions, and easy tax preparation.
Partnership: There are many types of partnerships, including general partnerships, limited partnerships, and joint ventures. Each has their specific function regarding the nature of the arrangement and partner responsibility.
C Corporations: Corporations are generally more complex and suggested for established companies with multiple employees. Corporations have many advantages, including limited liability, ability to generate capital, and corporate tax treatment.
Limited Liability Company: An LLC is a popular choice for Amazon business owners. An LLC provides the limited liability of a corporation and the positive tax implications and operational flexibility of a partnership. Some of the advantages of an LLC include limited liability and fewer restrictions to profit sharing.
S Corporations: An S corporation functions in a similar fashion to C corporations. The difference is that the S corporation is a flow-through entity with regards to tax treatment. Therefore the income the S corporation generates will only be taxed on a personal level. Some of the advantages include tax savings, business expense tax credits, and the ability to act independently from its shareholders.
Contact an experienced Amazon Seller CPA
Ebiz Accounting is a team of financial experts focused on Amazon-based businesses, providing customized guidance and services to clients all over the United States. If you are starting an Amazon business, you need to make the right decisions for your future and consulting with an experienced CPA is the correct first step. If you need expert financial advice on what business entity best suits your situation, contact Ebiz Accounting for a free consultation today.