Which WWW business model do you prefer or advise and for what reasons?

Subchapter S, C corp, LLC, Ltd, sole proprietor, partnership, limited etc

[Webwork]

Sub S or LLC - pass through the income, avoid double taxation.

Sole proprietor - simplify your tax forms. Increase your contribution to medicare?

Incorporate - "I'm concerned about liability". (Fear not, you will get sued even if you are a corporation, if you were directly involved in the negligent action, etc. Sooooo, buy insurance my friend.)

What version did you choose for what type of enterprise for what type of reason(s)?

Did you ever start off as 'version A' and later come to the conclusion that 'version B' would be the better route? Why? Did the changeover yield the benefits?

This analysis could apply to the UK, India, anywhere.

[diamondgrl]

This discussion cannot apply anywhere. The tax laws are different in each country.

In the US, since you are referring to US legal constructs, I would advise LLC. Almost everyone does these days. It has the most flexibility and has all the benefits of the sole proprietorship and some of those of a C Corp.

[Webwork]

Actually, diamondgrl, I was thinking that the discussion would apply globally for that very reason ;-)

I'd be interested to read how - as a result of varying national tax laws, etc. - people approach the issue of business entity selection in different countries.

Is the dominant consideration taxation in the UK, India, China, etc.? Are there different considerations? Different entities? How alike or different are they?

For example: C corp in the US. Pretty much unlimited shareholders. Ability to retain earnings and carry tax losses forward a long time. Taxed at the corporate level net of business expenses (wages) - which results in a double taxation at the corporate and individual level in some cases. Payment of dividents. Can set up different types fo retirement plans - which can be funded in a variety of ways that reduce income. Etc.

So, what are the different considerations and models that people employ in their respective situations.

Just a general knowledge thread. A little transcultural sharing and learning ;-)