Business Structure

Once you’ve decided to start a business, choosing the right business structure is probably the most important decision you’ll make.

The structure of your business is directly related to your tax liability and has substantial legal implications. As a result, the structure of your business has a direct impact on future growth potential and profits. Because of this, it’s imperative to select the right business entity for today’s needs and tomorrow’s growth. Fortunately, you don’t have to do it alone! The accounting and tax planning professionals at MB Group can help. We’ll work closely with you to understand your business and goals to guide you to the best decision in our business structure services.

Sole Proprietorship

A sole proprietor is a business owner who owns and operates an unincorporated business by themselves. A few key facts and notes about sole proprietorships include: They are easy to operate and form The owner will remain liable for any lawsuits filed against the business The owner reports all losses and profits on their personal income taxes

Partnership Types Of Business Entities

Partnership types of businesses share a lot in common with sole proprietorships. However, the key difference is partnerships will have two or more business owners. There are two different types of partnerships: general and limited partnerships.

General Partnerships

General partnerships (GPs) are the standard type of this business entity and the default mode of ownership for more than one owner. With GPs, you’re not required to register the partnership with your respective state.

General Partnerships

Limited partnerships (LP)s on the other hand are registered with the state. In an LP, you can have two different types of partners:

General partners are responsible for operating, owning, and assuming liability for the business.

Limited partners or silent partners are those who typically act as investors without having a hand in the day-to-day running of the business.

Corporation or C-Corp Type Of Business Filing

Corporations are independent legal entities that exist entirely separately from the owners. The company is controlled by shareholders, officers, and a board of directors — but one person can fulfill all of these roles. In other words, even if you are a sole individual, you can still enjoy the benefits of a C-Corporation. As you can imagine, corporations have many more tax laws and regulations for compliance. A few key highlights about corporations include:

Excellent for separating business debts from your personal assets
No limits on the number of shareholders
An independent tax and legal structure separates owners
Taxation is based on shareholder dividends and corporate profits
Corporations must have an annual meeting with minutes recorded

S-Corporation Type
Of Business Structure

Unique because it offers the legal protections of a C-Corp with pass-through taxation benefits. Pass-through taxation means it functions similarly to a partnership or sole proprietorship where the losses and profits of an S-Corp are passed through to the owner’s individual tax returns. As a result, there are no corporate-level taxes for an S-Corp.

Key Benefits & Facts of S-Corps

Independent tax and legal structures separate from owners
Owners report their share of loss and profit on their own tax returns
Helps separate business owners’ assets from business debts
S-Corps have a limit on the number of shareholders
All shareholders are required to be U.S. residents or citizens
Must hold annual meetings and the minutes must be recorded

Limited Liability Company
Company Business Filing

Offering the best of both worlds, a limited liability company (LLC) borrows key attractive features from each entity. Similar to sole proprietorships and partnerships, LLCs have fewer requirements and reduced paperwork. On the other hand, LLCs boast liability protections similar to those of a corporation. And when it comes to taxation, LLCs allow you to elect how you would prefer the IRS categorize your business — as a corporation or a pass-through entity. A few key benefits and facts of S-Corps include:

Key Benefits & Facts of S-Corps

LLCs are independent legal entities separate from the owners
LLCs can help separate business debts from your personal assets
There are no limits to the number of owners
Can be taxed like a partnership if there are multiple owners or like a sole proprietorship if there is only one owner
This entity isn’t required to have annual meetings or minutes
The business is governed by operating agreements

Jason K. Burress

2022-04-21

I feel very well cared for by Susan Bryant and her team since moving my business over to MB Group. I'm impressed by the amount of personnel with varying skillsets and expertise they have deployed for my account. I also feel they have my interests in mind and Susan appears very well organized.

Edwin Hernandez

2021-12-20

I first started using the MB Group at my prior company around 2008. I became used to the great professional service and most of all, the impressive competence of their team. When I started my current company, I never gave consideration to any other firm as I have 100% confidence and assurance all of my company's need would be met to my satisfaction. I value the relationship and ever so glad to have zero concerns over this important function of my business, and I owe it all to the great team at The MB Group. Edwin Hernandez Lukare Medical, LLC

M P

I cannot say enough about the firm and Janet Haston and everyone on staff. They are so attentive and responsive. They go out of their way to answer my questions and bend over backwards to make themselves available. I have complete trust their advice and they have always educated me in the process. Anytime anyone asks me for a referral, I don't hesitate to refer the MB Group. I am a client for life. I even sent my mother to them!

Cheryl Massey

2021-12-17

My over a decade relationship as a client with MB Group, LLC has always been pleasant, efficient, and highly successful. They have always understood my needs and I can't imagine working with another company.

Mike Haynes

2021-12-16

We have used The MB Group for both accounting services and corporate & individual tax services for several years now. The entire group is professional and very responsive. They are a true, valued partner. They have been critical to the success of our business.

Garrett Voegeli

Y’all are great! I really appreciate your approach on tax planning and accounting. You have been a huge asset to my business. I would highly reccomend.

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