The Importance of Choosing the Right Business Entity
If you’re looking to start a new business of any kind, including an Amazon business, it is critical that you understand and choose the right business formation. Depending on the scale and profitability of your business, the type you choose will have a considerable impact on how your business functions. Please continue reading and reach out to our experienced Amazon CPA to learn more about the different types of businesses and how our team can help you.
What are the different types of businesses?
There are various different types of business formations. Some of the most common ones are as follows:
- Sole Proprietorships: In a sole proprietorship, you are the only person who owns the business. You own it, run it, and do everything on your own.
- Partnerships: Partnerships are businesses formed by two or more people. There are a wide array of partnerships available, including general partnerships, limited partnerships, and joint ventures. Our team can inform you of each of these options and advise you on which may be best for your specific situation.
- C Corporations: C corporations are ideal for companies who’ve already established themselves and have several employees. Some of the many benefits of C corporations include limited liability, a greater ability to generate capital, and corporate tax treatment.
- Limited Liability Company (LLC): Most Amazon business owners are Limited Liability Companies. This is because LLCs provide the limited liability of corporations and the operational flexibility of a partnership. They also come with fewer profit-sharing restrictions.
If you have any other questions or you’re ready to get started, simply pick up the phone and give us a call today.
Contact Our Team
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation. We provide Amazon business accounting services to clients in New York and throughout the United States. All Amazon sellers should have an accountant they can trust. If you are looking to expand your business, or even form a new one, do not hesitate to reach out to our knowledgeable team today.