what business entity is a asian restaurant?

my parents owns a asian carry out restaurant that offers delivery, pickup, and dine-in.

What organization are we classified as? LLC, s/c corporation, sole propriorship, indepedent contractor, partnership, etc???....

8 Answers

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  • Isabel
    Lv 4
    1 month ago

    The proprietor should know.  If they don’t, you may need to go through all the documents yourself.  Worst case scenario, consult a tax attorney?

  • 2 months ago

    Mike.  The person who owns it...your mom...your dad..is secondary to the papers they filed when they opened the restaurant.

    Those papers...and probably the state certificate on the wall...and the sales and use tax registration will all have the tax designation (S-Corp; C-Corp. LLC, LP, PTNRSHP Sole Proprietor) that was selected when the restaurant was opened.

    Just because you do not like the answers that were given does not mean they are Wrong.

    Actually everyone of them is correct.

    So: find the papers/documents I mentioned above.  If you cannot find those then find a copy of the tax return from last year or the year before.  It will tell you if you are an S-corp, an LLC, an LP, an LLP, A C-corp, a Sole Proprietorship (not a good idea for a restaurant) or what the company organization is.

    Your accountant also has that information.

    The bank you do business with has that information.

    AND, if you go to the website for the state you are in...and go to the business section and enter your Tax ID#  It should also tell you about your company and what it is organized as.

    You can ALSO try calling the state where you live and give them the company TAX ID.

    As a restaurant, you should also have a current food inspection certificate.    It should state the company organization (LLP, LLC....)

    If you do not have a tax ID, your restaurant is not registered and you will need to decide how to register it very quickly.

    Finally.....have you asked your parents how they organized the company and what their tax status is?  Or do they not know, either?

  • Eva
    Lv 7
    2 months ago

    Who knows? A business owner chooses the type of entity. It isn't assigned. It could be any of the ones you listed except and independent contractor.

  • Anonymous
    2 months ago

    Its probably a sole proprietor. Ask them.

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  • 2 months ago

    How did they set it up legally when they started the business?

      You can't have a business license (in the USA) until you register your business as one of the above types of entities.

    To find out  what it is :

    You can contact their accountant (the person who does/did their taxes.)

    You can pull out their business file and look at the paperwork they received when they first opened (or bought) the business.

    You can look through their tax returns.

    (If you have employees, then you are having to file quarterly taxes and the type of entity (LLC, partnership...etc) will be on those forms also.

    But, the folks here can only guess what it is unless we have access to your accountant or tax records.  

    The only thing for certain is it is not an 'Independent Contractor.'

  • Judy
    Lv 7
    2 months ago

    could be any of those other than independent contractor depending on its legal setup.  

  • Bort
    Lv 6
    2 months ago

    It depends how the business is structured. If it is owned by one person it's a sole proprietorship, if it's owned by two people it's a partnership, if it's owned by 3 or more people (generally but it could be categorized as a partnership) it's usually categorized as a corporation. LLC stands for what it is and means: Limited Liability Company. A restaurant that does not have several locations (which is a Franchise) is usually a Sole Proprietorship. 

  • danxp2
    Lv 6
    2 months ago

    It is whatever they have set it up as. It is not an independent contractor. Otherwise the form of the business is determined by the number of owners and how the owners choose to report the business. It would be a sole proprietorship if there is 1 owner. If there is more then 1 owner it could be an S Corp or partnership that is a choice made by the owners. You should ask your parents, look at the tax return filed, or ask the people that file your tax return.

    Edit:

    A c-Corp is what the large companies that trade stock on wall street are. They are a completely seperate entity with investor as stock owners. C-Corps have ability to raise more cash then any other entity, but come with a lot of regulations and reporting requirements. For 1 owner this would be not e the way the company was set up... unless maybe it was a franchise, but even then very unlikely.

    With the 1 owner, the mother it is likely either an s-corp or a sole proprietorship. If it is an LLC or not is really a state thing, the federal government doesn't care for tax purposes. 

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