What are the essential legal requirements to start a business? - Choose a type of business you want to start. Sole Proprietorship General Partnership, Limited Partnership LLC (limited liability company) C Corporation, S Corporation - Choose a business name. How can you choose a good business name? - Choose accounting period and method. The choices for accounting period are calendar year and fiscal year. Fiscal year is an accounting year that is used to calculate annual financial statements in business. Taxation laws require accounting reports generally once per every twelve months or once per every 52 or 53 weeks, but the year isn't required to be the ...

Limited liability company is a hybrid business format that has advantages from corporations and partnerships. Start-up cost is not little, for example, $800 Franchise tax board for California and $79 for filing, but many small business owners choose to pay this because of its benefits: Limited liability - An LLC owner or LLC members are not personally liable for the LLC's debts unless they have signed a personal guarantee. Taxation flexibility - An limited liability company can choose to be taxed as a sole proprietor, S corporation, C corporation or partnership ("check-the-box taxation"). Tax benefits (no double taxation) - Unlike corporations, an LLC ...