How-to to run a software consulting business

Setup legal structure and banking

by shabda on October 16, 2011

 

What legal structure you will setup depends on various factors depending on your place of residence and business. I can’t give you advise (We are a Indian Private Limited Company) without knowing your place of business. Here are the things to keep in mind though. (Ordered by approximate order of importance)

  • Does it minimize your taxes payable
  • Does it have not-too-onerous accounting and reporting requirements
  • Does it allow you to deduct business expense easily
  • Does it allow you to additional equity holders
  • Does it allow you to close the legal entity without too much hassles.

As soon as you have the legal entity, I suggest opening a bank account for this. This allows you to keep your personal and business account separate from start, and keep all your tax deductible expenses at a single place.

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