Question

You are given a budget of $1,000,000 to start your own business. What type of business would you start? Please state which form of business ownership would you use? State the reason(s) why. Provide the background information and an estimated budget for your business.

Answer 1

I would start with a business of Fruit pulp Processing business in USA. It comes under manufacturing sector and has gained a lot of importance over the years. Since I'm a single owner the options avaiable for me for business ownership are as follows :

1) Sole Propreitorships

2) Single Owner S - Corporation.

I would choose Single owner S - Corporaiton due to the following reasons :-

1) Corporations are legally separate entities and they also have a much different tax structure.

2)They pay their own separate taxes at a corporate tax rate instead of a personal tax rate

3) Another benefit that Corporations offer is that they've been around for hundreds of years. In other words, this isn't their first time around the block. With so many centuries of developed case law, you don't have to worry about any legal gray areas that are left up to the whim of a glorified traffic judge while your livelihood hangs in the balance.

4) In addition to the separate tax structure, Corporations have an unlimited life, free transferability of ownership (unlike LLCs, where it's harder to transfer your membership shares) and tax benefits that allow for many more deductions.