One of the first steps in starting a new business is deciding what type of entity to form, if any.  Business owners have number of different entity structures to select from when setting up a new business.  A few of the more common are listed below. 

• Sole Proprietor
• Partnership
• LLC
• S-Corp
• C-Corp

What most business owners don't know is by selecting the right entity structure they can reduce their tax burden around 15% on the profits of the company.  Think about that for a minute tax savings of 15% each year on the profits of the business for the life of the business.  The amazing thing is most business owners don't even seek out professional guidance when making this decision they just do what their buddy did when he or she setup their business.  

Before you setup the business meet with a qualified CPA and seek professional advice before you make the decision.  By paying a couple hundred dollars in fees you could save tens of thousands of dollars in taxes over the life of the business.  You will be in good shape if the rest of your investments in your business result in that type of return on the money spent.