"Which category would my boutique file as (LLC, S-corporation, C-corporation, proprietorship,etc) ?

"I want to start my own boutique. However I was confused on what to file it as (LLC, C-corporation, S-corporation,etc). I want my boutique to consist of my own designs as well as other designer's collections, and accessories from wholesale warehouses."

"Which category would my boutique file as (LLC, S-corporation, C-corporation, proprietorship,etc) ?
There is no one-answer-fits-all. It depends on what liability protections you need, what your tax situation is,etc.





Sole props are easy - no paperwork to set up, and the income goes on your Schedule C of your personal tax return. You, personally, face unlimited liability for business debts, court judgments, etc. Basically, you and your business are the same legal entity.





Corps and LLCs are separate legal entities, like another "person" in the eyes of the law (and IRS). They afford liability protection against debts and judgments against the companies, BUT ONLY IF formalities are followed, records kept, etc.





S Corps and LLCs receive similar tax treatment, in that the profits flow through the company to your personal tax return. In the C Corp model, you would just be a regular payrolled employee of your own corporation. A lot of people talk about "double taxation" w/ C Corps - when the corp pays income tax on its profits and then the shareholders pay capital gains tax on the dividends. But in all reality, this is probably a non-issue - just keep an eye on your bottom line and work with your tax preparer to adjust your income/bonuses/business expenses so that dividends will not be distributed (and therefore not taxed twice). There are a number of tax deductible expenses w/ C Corps that are not fully deductible under the S Corp or LLC model (or sole prop) - health insurance comes to mind.





Do you homework, then talk to a tax professional - either a tax attorney or a CPA who specializes in this area. Whatever you pay this professional will more than pay for itself over the life of your business.