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  January 20, 2020 3:53 AM EET

   

  Perhaps you've been thinking about making a change in your Choice of Entity. Maybe you've been asking http://www.cheapairjordan12forsale.com/ , "What type of Business Entity should my business be?"

  By "Business Entity", I mean the legal structure of your business, and there are basically five from which to choose:

  Sole Proprietorship
  Partnership
  Limited Liability Company (LLC)
  "C" Corporation
  "S" Corporation

  This is not a question that is easily or quickly answered. There are many factors to consider, and here's one that is often overlooked:

  If you are a Sole Proprietorship, your odds of getting audited are two Cheap Jordan 4 , three or even four times greater than the other entity types.

  Take a look at the following chart of IRS audit rates for Year 2002:

  INDIVIDUALS -- with Schedule C
  Sales:
  < 25,000 ................ 2.63%
  25,000-99,999 ........... 1.13
  > 100,000 ............... 1.36

  C CORPORATIONS
  Assets:
  < 250 Cheap Jordan 1 ,000 ............... 0.22%
  250,000 - 1M ............ 0.73

  S CORPORATIONS .......... 0.42%

  PARTNERSHIPSLLCs ....... 0.27%

  Now let's analyze the numbers by comparing the Schedule C audit rates with those of the other entity types. Do you see the difference?

  Depending on your sales, the audit rates for Sole Proprietors range from 1.13% to 2.63%, compared to the rates of 0.22% for small "C" Corporations, 0.27% for Partnerships and LLC's Cheap Jordan 12 , and 0.42% for "S" Corporations.

  Of course, all these audit rates are still relatively low, especially compared to previous years. And even at 1 to 2%, I hope you like the odds of not getting audited.

  But if you are looking at the pros and cons of incorporating your Sole Proprietorship, you should be aware that making a switch will improve the odds in your favor even more.

  Should you form a corporation simply to lower the chances of being audited? Of course not. But if there if have other compelling reasons to incorporate Cheap Jordan 11 , these lower audit rates are the icing on the cake.

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