There are several forms of business entities a factoring company will finance. Each presents its own unique benefits and drawbacks. Most of these benefits and drawbacks all have to do with the personal liability to the business owners and the tax liability for the business and its owners. For a factoring company each type of business entity creates some unique financing challenges. Some of the most common business entity forms include:
- Sole proprietorship (Sole Prop)
- General Partnership (Inadvertent Partnership)
- Limited Liability Company
- C-Corporation
- S-Corporation
With so many types of business entities to choose from it is very important to seek the advice of a qualified accountant and attorney for advice on what type of business entity to form. They will review your specific business and individual situation to help you decide which entity best suits you now and into the future.
