What is the best type of business entity for e-commerce?
Question Details: My husband and I will be starting 2 different companies but both will be e-commerce. We'd like to register as one parent company and 2 DBA's. What is the best type of business entity for tax purposes?
Generally, for almost all purposes unless you anticipate growing this to the point where you can go public and do an IPO, and LLC is the best structure. An LLC provides liability protection to the owners; let's you take "pass through" or "disregarded" tax treatment, so there is no separate "corporate" taxation--the profits or losses drop directly to the owners' ("members") bottom line and they pay the taxes on them once, instead of having the profits taxed at the corporate level first then again when the money is distributed to you; and an LLC involves less paperwork and record-keeping than a corporation.
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