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Starting your business
Step 1: Make a plan PART 6 OF 6
Decide ownership type: Sole owner, partnership or corporation?
What's the right ownership structure for your business?
- Sole proprietorship: This is the simplest business structure. With this structure, the business owner represents the company legally and fully.
- Why it works:
- Filing taxes is quicker and easier. You just file your 1040 with business losses and profits.
- You don't need as much set-up. No lawyer necessary.
- Finances are simpler and easier to manage. You'll need a separate bank account, but otherwise, your money is the company's money, and vice versa.
- The disadvantages:
- You're personally liable for the company's debts and actions. That means your personal wealth and assets are linked to the business.
- It's all up to you. All the decisions are yours, and you're solely responsible for the company's success or failure.
- Harder to get money. Right now you think of your business as being small and manageable, but if you're successful it will grow. You may need capital later, and outside investors may be easier to come by if you're a corporation.
- Limited Liability Company, or LLC: An LLC is somewhere between a sole ownership company and a corporation. Owners are called members, not partners or shareholders.
- Why it works:
- It offers more liability protection than a sole proprietorship.
- You can decide how to distribute the profits.
- You don't have to take minutes at your meetings, unlike corporations.
- You avoid the double taxation issue of paying corporate and individual taxes.
- The disadvantages:
- The LLC dies when a member dies.
- The LLC may be dissolved if a member files for bankruptcy.
- It's more complicated than a sole ownership.
- C Corporation: The C Corporation is called a regular corporation.
- Why it works:
- It's legally independent from its owners.
- It has a board of directors and shareholders who can help guide the company.
- It might lower your income taxes.
- The disadvantages:
- Its structure is complex and is likely to need an attorney to set up.
- That board of directors can be complicated and a potential source of conflict.
- S Corporation: An S Corporation, also called a Small Business Corporation, is approved by the IRS.
- Why it works:
- No corporate tax.
- Potentially easier to sell.
- Some liability protection.
- Some tax benefits.
- The disadvantages:
- Limits on issuing stock.
- More difficult to get outside investors.
- Corporate meetings, just like a corporation.
Have fun
An Excuse to Celebrate
December 2
Today is St. Bibiana's Day. Don't know who she is? You probably just forgot because St. Bibiana is a the patron saint of drunks and hangovers. What better way to honor her than by heading to the bars? Bars and clubs guide »
Best of Dayton
You Decide What's the Best
Best Cup of Coffee [poll]
Here's where you get to tell the world what you think. Every week you get to vote on the best that the Dayton area has to offer in entertainment, restaurants, recreation & and a few other bizarro categories.
Voting in this category ends on Dec. 8.
We have REVISED our official rules »
Colleges
Find Local College Events
University of Dayton
- The Dan Rivers Acoustic Open Mic Show at Bargos Grill
- William Grant Still Music Festival Celebration at Sear's Recital
- Karaoke at Milano's
Sinclair Community College
- Open Musician Blues Jam hosted by Brownstreet Breakdown at J-Alans
- Open stage night at Canal Street
- College and Talent Night at Aquarius Night
Wright State University
Things to Do
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Holiday events to get on your radar … and we're not just talking Christmas lights here [things to do]
There's never a shortage of holiday events in the area to occupy your time until the New Year rings itself in. This year, all the usual suspects are present — Woodland Lights, RiverScape ice skating, Lebanon's Carriage Parade — with a couple of brand new additions to the mix, including 50 Under $50, a collaborative collection of area artists, getting together for a Friday/Saturday shopping and entertainment experience at 20 N. Jefferson St. downtown this weekend, the same place the recent Dayton LadyFest made its mark; Sandstorm Middle-Eastern Dance Company's Ho Ho Hafla — a holiday show like no other; and a pub crawl for a good cause. More »
What's happening this week
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What's happening this week
Movies
Movies & Showtimes
'Australia'[movies]
A big action adventure with big, big stars Nicole Kidman and "Sexiest Man Alive" Hugh Jackman. Set in Australia (duh) on the brink of World War II, the plot follows English aristocrat Kidman and cattledriver Jackman as they fight to save the land she inherited. More »
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Restaurants
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Random Top-Rated Restaurants
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Food & More
Local Dining
Wine & Dine: More local restaurants are offering wine tasting/dinner pairings [review]
Some are searching for new customers. Others are looking for a test market for new appetizers or entrees. Others want customer feedback on which new wines to add to the wine list. Whatever their reasons, more restaurants in the Dayton area are using wine tastings and wine dinners to try to get new, fresh faces to cross their doorsteps. A decade ago, diners could easily count on one hand the number of restaurants that held regular wine events. Now, the number exceeds a dozen and is growing. More »
Random Top-Rated Restaurants
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