Getting started as a business owner is a similar process for everyone, regardless of immigration status. Choosing your business structure will be the first decision you make when you register your business, as it will determine how you operate and how you are taxed. Deciding what kind of business structure you want to have depends on many factors, such as what kind of dream you’re bringing to life, how comfortable you are with risk, how big you want to become, or how quickly you want to grow.
In the following sections we will review the following legal structures: Sole proprietorship, general partnership, Corporation C, and Limited Liability Companies (LLCs), and Cooperatives (Co-ops).
Consider the following questions before making your decision:
- Legal liability: How risky is your business? If your business is generally risky, you may need the additional protection of an LLC or corporation.
- Tax implication: How are you going to pay your taxes and those of the business? Do you want to pay business taxes separately from your personal taxes?
- Costs: How expensive is it to start? Consider the $800 tax minimum for corporations and LLCs in CA.
Partners: Do you have business partners? How are you dividing ownership? Are you paying business taxes separately or together?
