If you own a small business in Houston, TX, you may be wondering if you need a business entity consultation. The answer is that it depends on your specific business needs. However, in general, a business entity consultation can be very beneficial and vital for small businesses. Here are three reasons why:
- A business entity consultation can help you choose the right business structure.
- A business entity consultation can help you save money on taxes.
- A business entity consultation can help you protect your personal assets.
1. Choosing the Right Business Structure
A business entity consultation can help you choose the right structure for your business based on factors such as the size of your business, the amount of liability protection you need, and whether you want to raise money from investors.
2. Saving Money on Taxes
A qualified tax professional can advise you on which tax benefits are available to you based on the type of business structure you choose. For example, if you opt to form an LLC, you may be able to deduct certain expenses related to your LLC on your personal taxes but you may have to pay self-employment taxes. There are pros and cons to every entity type that you need to check as well.
3. Protecting Your Personal Assets
If your business is sued or incurs debt, your personal assets such as your home or savings account could be at risk unless you have formed a separate entity such as an LLC or corporation. Forming a separate legal entity can help shield your personal assets from liability arising out of your business activities.
A business entity consultation can be advantageous for small businesses in Houston, TX. A qualified advisor can help you choose the right business structure, save money on taxes, and protect your personal assets from liability. If you’re not sure whether a business entity consultation is right for your small business, contact Molen & Associates today to find out more about how a consultation can help your business succeed.