How Should You Incorporate Your Business? Here’s a Cheat Sheet. (Infographic)

There are lots of super sexy reasons to become an entrepreneur -- the independence, the possibility of financial success, the thrill of bringing an innovative idea to life. But don’t be fooled. There are a lot of complicated, tedious and mundane aspects to being an entrepreneur, too.

Like doing your taxes. And your expenses. And -- perhaps the most dreaded -- determining how you will legally structure your business.

Deciding whether to register as an S Corp, a C Corp, an LLC, sole proprietorship or a partnership can be tricky. Each has unique benefits and costs that have serious implications for your bottom line.

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For example, if you decide to establish your business as a sole proprietorship, the tax burden will be the lowest, but you will be held personally liable if your business goes into debt or can’t pay back a business loan. If you decide to structure your business as a C Corp, you will face burdensome and complex legal requirements, but the personal assets of you and your shareholders are protected from business losses.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

The infographic embedded below,  generated by the University of Southern California online Master of Laws program, neatly breaks down each legal structure in terms of its costs and complexity and advantages.

Check it out.

Click to Enlarge+