Since I am starting my business on a part-time basis as the only employee while still employed full-time elsewhere, I am trying to figure out what kind of business structure I should use to have the best tax advantages and still keep my business finances separate from my household finances. I need to have the structure in place before I can apply for a tax ID number which I need to open a business bank account. Until now, I’ve been using my personal checking, but now that the business has an actual name, I need to tie up the loose ends.
For those of you in the same situation, is the preferred structure a Limited Liability Company, or a Corporation of some sort? Or should I consider listing my wife as a partner in a Limited Liability Partnership? I’ve asked finance people, and they say talk to an attorney. I’ve talked to an attorney, and was told to talk to a tax person. I don’t have a tax person because I’ve never had a business and never needed one.
How are you guys structured? Any suggestions or recommendations would be greatly appreciated.