Decide the Legal Structure of Your Business
1) Decide the Legal Structure to Your Business
This sounds daunting but it’s actually fairly easy. Most people opening a sports card store will fall under sole proprietorship or partnership. Here are various structures you can set up your business under:
- Sole Proprietorship
- General Partnership
- Limited Partnership
- LLC (Limited Liability Company)
- Incorporation – S-Corp, C-Corp
This is all about taxes. If you set up your business as a sole proprietorship you will report your personal and business income taxes using one form. If you set your business up under an LLC your taxes became more complicated.
Some states require you to file legal partnership papers if your structure is a partnership agreement.
See this page for more information on legal structures.
My recommendation: unless you have more then two people in your business, or have been apart of an LLC before, go with a sole proprietorship or partnership. Your taxes shouldn’t be that complicated to figure out on your own using one of those options.
Once you begin to have success and make money, you can always change over to an LLC for tax purposes or to add additional owners to your business.