With the advent of self-help legal websites and advances in on-line entity formation tools offered by many states, it is now easier than ever for anyone to form their own legal entity without the assistance of an attorney. However, the convenience offered by such options does come at a price that you may well end up paying down the road. Here are just a few of the things that you may be missing by opting to go without personal, professional legal representation in setting up a new entity:
Entity Formation Considerations
Self-Employment Taxes Overview
The self-employment tax is an additional tax levied on self-employment income under the Self-Employment Contribution Act (SECA). The self-employment tax is comprised of a 12.4% Social Security tax and a 2.9% Medicare tax, for a combined 15.3% tax. The self-employment tax is in lieu of the tax on wages under the Federal Insurance Contributions Act (FICA), pursuant to which an employer is required to withhold Social Security and Medicare taxes from wages paid to the employee and to pay the employer's own share of these taxes.
What type of entity is right for my business?
