Choosing the Type of Business Structure
As you start offering catering services, you may notice your income increase overtime, especially when you cater to corporate functions. Of course, this is good news to your business, but all your efforts will be for nothing when the governing authority flags you for operating a non-registered business. So it is very important to decide the type of business structure and then proceeding with the registration. For example, in the US, the IRS will red flag a caterer earning over $600 without being incorporated.
The chosen business structure will be dependent on how you want your business to be taxed and what liabilities you can risk. A sole proprietorship company entails you, as the owner, to be held accountable to whatever unfortunate incidents in your operation. This is riskier compared to limited liability caterers and corporations. Remember that you will be serving food … Read More