Are you starting a Las Vegas small business? We want to help! We’re a local digital marketing agency in Las Vegas that has helped businesses big and small with everything from stunning web design for your e-commerce business to creating and managing your paid advertising campaigns on Google and Facebook. We really do it all! But let’s not get too far ahead of ourselves, if you’re barely starting your business then the odds are you’ll need to make your business legal with the Secretary of State here in Nevada. When you go through the filing process, you will be asked to file your business under a legal structure, each of which has its own set of pros and cons. How can you know which is the best legal structure for your business? We’ll try to make it as simple for you to decide!
Now we’re not legal experts, so this isn’t legal advice. But we do know a thing or two about starting a local Las Vegas business and we’d like to share some of the knowledge that we picked up along the way.
Making Your Business a Legal Entity
When you take your side hustle or a hobby and decide to monetize it, you will need to make sure that you are doing it legally in the eyes of the government. First, because it gives you legitimacy, and second because you don’t want to go to jail for tax evasion. But that is a given! You will want to head over to the Secretary of State’s website where you will be able to fill out the right forms.
A word of advice— avoid using online filing websites like Legalzoom and other websites that dumb down the process in exchange for money. Filing your business with the state is so simple that you can do it yourself and save yourself a decent amount of cash in the process.
What Kind of Legal Structures Are There in Business?
So what are the different kinds of legal structures that you can file your business as? The main legal structures include:
• Sole Proprietorship – 1 person with unlimited personal liability.
• Partnership – 2 or more people with unlimited personal liability.
• Limited Liability Company (LLC) – 2 or more people with no personal liability.
• Corporations – 2 or more people with no personal liability.
• C Corp
• S Corp
• Non Profit
As you see, there are different types of corporations; C corps, S corps, and non-profits. While each of these is a corporation with the same level of liability where they differ is in how they are taxed.
Each of these has its own pros and cons. Sole proprietorships and partnerships carry more liability than LLCs and corporations, but each entity is taxed differently as well. How is each of these different legal entities taxed?
• Sole Proprietorship – Personal taxes only.
• Partnership – Self-employment taxes and personal tax.
• Limited Liability Company (LLC) – Self-employment taxes and personal tax.
• C Corp – Corporate Tax
• S Corp – Personal Tax
• Non Profit – Tax Exempt
When you are starting a small business it’s important to have a good understanding of the trade-offs of each legal structure of your business so that you can make the decision that works best for you and your organization.
K2 Analytics Las Vegas Digital Marketing
K2 Analytics is a leading Las Vegas digital marketing agency committed to helping local businesses like yours grow. We offer a full range of in house digital marketing services from social media marketing to web design and PPC advertising. When we partner with local businesses like yours, we become an extension of your business providing the highest quality of customer service while generating the best online marketing results for your business. Get started today.