Iam opening a nail salon, what kind of business structure do i need?

i am opening a nail salon. i went online to get more info, and the first step was to choose a structure. but there are many:


sole proprietorship


corporations


texas business corporations


texas profesional corporations


limited liability company





what is the best one. i am going to be the only one there working. but i dont want the business to have anything to do with me. if the business goes under i dont want them to come after me and my peronsal things. what would be the best choice?Iam opening a nail salon, what kind of business structure do i need?
The best choice would be a corporation if you don't want any liability at all. Only problem is, you will have to pay unemployment compensation tax on yourself, so it will be extra money out of pocket. For the type of business your end, what is the real risk of someone suing you or you going into an extreme amount of debt? Those risks exist, but they are much lower for some types of businesses. you should consult your insurance agent; if the risk is low, try an LLC instead of a corp.Iam opening a nail salon, what kind of business structure do i need?
An S Corp. It is like being sole prop. but has the liability controls of a regular corp.





You pay yourself a salary and any ';profits'; are taxed at your income rates. You don't pay social security or medicare on the profits portion, so you are effectively saving 15.4% in taxes. Your salary should be an amount similar to what you would pay someone to manage your business. As you can see, there are advantages if you don;t pay yourself too much by saving on the taxes.





As an officer of the corporation you don't need to pay the unemployment taxes. But you should always check with an accountant for your state.

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