Legal Structures, Licenses & Taxes

 

This week I learned about the types of legal structures and which one would work best to build my business brand. Of the structures, sole proprietorship, partnership, and limited liability, I found a sole proprietorship would work best for my business in affiliate marketing. 

My decision was based on the research from this weeks learning, as well as, several additional informative websites (links below). However, before deciding, I needed to understand the market and industry requirements of my business. To do this,  it required researching other affiliate websites and understanding the affiliate program structure.

I found it significant to understand the business model before deciding on a legal structure because of  tax obligations or acquired penalties if not in compliance with local, county, and state regulations. Each business structure varies in obligation and some structures require more effort in setting up. Some factors I considered before deciding which structure was for were:

1. Control- What level of control do I want over my business?

2. Liability- What is my legal liability? 

3. Cost- Each structure has varying costs when setting up. Do I have any constraints that would prevent me from pursuing the preferred business structure?

4. Tax Obligations- Will I be able to pay the taxes owed under my preferred business structure?

5. Continuing the business- How long do I want my business to run? Is it transferable?

Research Sources

IRS.GOV

https://www.irs.gov/businesses/small-businesses-self-employed/business-taxes

U.S. Small Business Administration

https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

USAGov

https://www.usa.gov/business?source=busa