What are my option as far as liability as a business owner? My employees will be in direct contact with shoppers. What if this company becomes really big will I be able to sell shares in the stock market? I will be paying self employmet taxes because at least in the beginning I will be operating as a sole owner. If not now soon I will have others involved as owners of the company. Is there anything I can do to look as if I am an established and big company? .

 

To limit any liability for debts or civil actions arising out of business transactions you may want to set up an LLC or form a corporation. An LLC will limit any liability for injuries incurred by clients while shopping in your business establishment. If you have big plans and perhaps thinking that you eventually be a big company you will need to have a C corporation to sell shares in the stock market. An S corporation can only issue stock to a small number of shareholders and the stock cannot be bought publicly that is in the stock market. Most sole proprietors or sole owner LLC need to pay self employment taxes. To avoid paying excessive self employment taxes you may want to for an S corporation which can help you split your salary with dividents and save on taxes because dividents are not subject to self employment taxes. Though a sole proprietorship does not need a federal tax ID number a partnership does. A partnership also needs a fictitious business name to operate as well as a partnership agreement. In general an LLC or corporation has more prestige and credibility as a business entity company than a sole owner or a general partnership. So if you want to be taken as a bigger company or more credible one you may want to set up an LLC or incorporate.

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