When you decide how you want to organize your company, you are determining the official business structure. Since there are a number of factors that go into choosing the right structure for your business, it’s important to fully consider how your company will be affected by the tax entity types.
When is comes to your business, the structure of your organization affects so many different aspects of the way things work—including your tax obligations. By choosing the structure that just right for your business’s unique situation, you can avoid expensive and time-consuming taxes and replace them with more affordable, simplified tax liabilities. Understanding how business structure affects taxes is key for small business owners.
Download our helpful chart to better understand the tax differences between business structures: