We’ve all heard of the major corporations, especially in America. Still, so many small businesses may not receive the recognition they deserve, including the fact that they hire a large percentage of the workforce.
A small business in the USA has less than 500 employees, and many people prefer working for these smaller companies for many reasons, including less bureaucracy.
Employees also benefit from getting to know coworkers and the owners more personally. Hence, the business feels more like a team or family than an extensive group of individuals. Employee is another number in a big corporation. Employees of small business companies have noted that they enjoy feeling as though they are valuable in the company. On the flip side, owners have enjoyed getting to know precisely who their employees are that they have hired.
When a business has 100 members or less, it can take the advantage of becoming an S-corporation. An S-corporation will have the same protected liability advantages as a traditional C-corporation but will have federal pass-through taxes rather than the double taxation imposed on a C-corporation.
C-corporations are viewed as a “person” to the IRS, so owners of C-corporations must not only pay their own federal income taxes and that of their C-corporation companies. On the other hand, S-corporations allow owners to be taxed once using pass-through taxation. While an S-corporation isn’t the most well-known business entity, it certainly has its values and people interested should check this out.
Choosing to Be a Small Business Owner
Today, small businesses are not just companies starting out. Many business owners decide that they want to remain private, and for many, that may be in their best interest. If you need more small business info, you should research before deciding to go with one business entity over another because some entities are best for some companies but not others. It all depends on your current and end goals. This is not an easy task to figure out alone, and it is always well-advised to turn to business attorneys to help guide and advise you on your best options to understand why some entities are better than others for you.
If you’re a small business owner, you will likely know your group of employees much better than if you had hundreds of employees. Additionally, you’ll be able to trust your employees more because you will have a relationship with them. In return, your employees will be loyal and want to provide you with the best work possible for your business because they will be invested in you and your company. With this amount of trust and communication, you can be sure your company will end up on top because of how diligent your employees will work and want to continue working for your company.
Fewer employees also mean you need less office space to lease (some even no room!), materials, equipment, and other necessary business utilities. You’ll be able to save money on this and payment because you will have fewer employees. Additionally, you’ll be able to save money on taxes while protecting your personal liability. Depending on your business structure, plan, finances, and goals, small business owners may be the best route for you to go with.