We’ve all heard of the major corporations out there, especially in America, but there are so many small businesses that may not receive the recognition that 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 on a more personal level so the business feels more like a team or family, rather than a very large group of individuals or put another way the employee is another 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 exactly 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 pass-through federal 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, but also 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 do your research before deciding to go with one business entity over another because some entities are best for some companies, but not another. 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 what your best options are so that you 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 they can possibly provide for your business because they will be invested in you and your company. By having this amount of trust and communication, you can be sure that your company will end up on top because of how diligent your employees will work and want to continue working for your company.
Having fewer employees also means that you need less office space to lease (some even no space at all!), materials, equipment, and other necessary business utilities. You’ll be able to save money on this along with payment because you will have less employees. Additionally, you’ll be able to save money on taxes, all the while protecting your personal liability. Depending on your business structure, plan, finances and goals, small business ownership may be the best route for you to go with.