Читать книгу Start & Run a Bed & Breakfast - Richard Taylor - Страница 36

Your accountant can provide advice on the advantages and disadvantages of selecting a particular business structure. He or she will be familiar with the tax and liability implications associated with each form of organization. There are three basic forms your business structure can take:

(a) Sole proprietorship

(b) Partnership

(c) Corporation

A sole proprietorship is the most common form of business structure for small businesses, including B&B operators. A sole proprietorship has the following pros and cons:

• Tax advantages for the small operator

• Owner has complete control

• Low start-up costs

• Unlimited liability

• Difficult to raise capital (from banks, etc.)

In a partnership, you share the ownership of the business with one or more people. A partnership has the following pros and cons:

• Tax advantages for the partners

• Liability depends on type of partnership

• Low start-up costs

• May have better success raising capital

• Control must be shared

The corporation is a form of organization more often used by larger businesses. Most B&Bs would not normally choose to incorporate their business. Corporations have the following pros and cons:

• Better tax advantages in certain higher tax brackets

• Limited liability

• Easiest to raise capital

• Expensive to organize

• Extensive accounting required