One of the most significant decisions that you must make in the business industry is what kind of legal organization you will select for your company. The business structure that you select has major bearings on how much you will pay in taxes, how much paperwork your business must complete, the personal liability you face and it directly impacts your ability to borrow money. Because this is such a major decision, allow the business structure selector template to simplify the task for you.
Selecting the right business structure will help you gain legal protection and tax benefits for your company, and the template is available for free on this page.
How to Use The Business Structure Selector Template
- Add company information: The first step is to add basic information about your company such as the name of the company and the number of owners. You also need to include your business’s net income and salary information; it is okay if you need to make projected estimates for these fields.
- Add tax information: The next step is to add tax information based on your state. This information will include any other income that the owner may have to pay self-employment tax on. Finally, you need to complete the two last fields which require the tax rate on individual income and business income based upon the state where the company is located.
- Consider the different structures: Once all the needed information is added to the top chart, figures will be generated for the bottom chart, showing side-by-side comparisons for sole proprietorship, partnership, corporation and limited liability corporation (LLC) structures.
Business Structure Selector Template Tips
- Hire a professional: Selecting your business structure is a major decision; it is a smart choice to invest in a business professional who can review the template and offer expert advice about which structure is most beneficial for your business.
- Business structures are subject to change: Whatever structure you select, you are not forever bound to that type or organization. A business’s needs can change and because of this, the structure can change as well.
- Four critical elements: When using the business structure selector template, make sure you fully understand what these four critical elements entail: tax and management guidelines, legal liability protection, expenses and capital.
Selecting a business structure for your company is not a simple task, but the customizable, easy to use business structure selector template makes this major decision a bit easier for the owner. The absolutely free template is downloadable right here for your convenience. Input the necessary information and allow the spreadsheet to generate everything you need to know about the different structures and the tax and liability protection benefits offered for each structure. Consider hiring a professional and always choose the structure that best fit your needs.
Download: Business Structure Selector
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