For federal taxes, LLCs are typically treated like sole proprietorships if there is one owner, or like partnerships if there is more than one owner.However, by filing an entity classification election form with the IRS, LLCs can be treated like corporations for federal tax purposes.Corporations are more complex structures than the others.
This guide is designed to help you better understand your readiness for starting a small business. Rather, it is a tool that will prompt you with questions and assist you in evaluating your skills, characteristics and experience – as they relate to your readiness for starting a business. Your responses will be evaluated at completion of the questions.
You don’t need a degree in business to start one, but knowledge is power.
” It provides you direction as you make decisions that will impact the future of your business.
Your business description provides the “who, what, when, where” of your business, including ownership, the type of business, start date, and the location.
Although not required, forming an LLC should be done with the help of a qualified legal professional.
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Among other requirements, LLCs must create a governance document called an Operating Agreement.
General Partnerships are like sole proprietorships with more than one owner.
Partners share managerial duties, profits and losses, and each is personally responsible (liable) for all business debt.
The business has limited legal liability like a corporation, but has fewer governance requirements.
Creating an LLC requires filing with the Washington Secretary of State.