Choosing the Right Structure for Your Home-based Business

Many retirees start home-based businesses, either to make money at home to supplement retirement income or to stay active – or both! Often these entrepreneurial endeavors just sort of “evolve” without any real planning. But did you know that the type of entity you choose (or fail to choose) for your home-based business can have serious tax and legal ramifications?

Basically, there are just a handful of structures from which to choose. But the differences between them are significant. An individual or married couple may choose to go the easiest route and operate as a sole proprietor. Two or more individuals who desire to conduct business together must form a partnership of some sort – unless they get way more formalized and set up a corporation or Limited Liability Company. This can all be so confusing!

Well, I’ve written an article on Suite101 on this very topic. For more information, see Small or Home-based Business Ownership Options. In addition, here are a couple of Amazon links to Home-Based Business for Dummies and Best Home Businesses for People 50+, both by Paul and Sarah Edwards.

Please Note: These are affiliate links and I will receive a little kickback should you click and order.