can you replay to this classmate

Edgar Barrera,

My response will be to question number 2. There are many different types of business structures that a new owner or new owners of business can choose from that can relate to how they want to compensate themselves and their employees. Examples of these types of structures would be LLC, partnerships, corporations or a sole proprietorship. A new owner can choose one of these structures based on how they want to get compensated. Sole proprietorship compensation is treated and taxed as personal income. A owner would choose this structure if they are doing business on their own and are okay with passing their business income through their own personal taxes. If an owner will have multiple partners and wants their business to be a separate entity then an LLC will be their choice. An LLC also gives a new owner different options of taxing. Examples are LLCs that elect to be taxed as S-Corp or as Corporation. S-Corp which can give good tax breaks for owners who work for their business as an employee. Structure all depends on the owner's situation and the plans for the business.