Business entity selection will directly affect the taxation of income associated with the business activity. Business owners should consider purchasing insurance through professional or trade associations, if possible, as individual insurance policies can be expensive and difficult to obtain.
This ecourse is an introduction to the complexities and strategy behind business entity selection. The rules can be complex and may vary across individual states. Knowledge in this complex area is critically important to the personal financial planner, as self-employment continues to gain in popularity, including from within one's own industry. Estate planning objectives may be very important considerations when selecting among types of business entities to house certain income-producing activities.