Small businesses are the main stay of the American economy and represent the independent way of life in our country.
Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to apply for government support and qualify for preferential tax policy varies depending on the country and industry. While small businesses can also be classified according to other methods, such as annual revenues, shipments, sales, assets, or by annual gross or net revenue or net profits, the number of employees is one of the most widely used measures.
Small businesses include service or retail operations such as convenience stores, small grocery stores, pharmacies, bakeries, delicatessens, beauty shops or tradespeople (e.g., carpenters, electricians, plumbers, restaurants, lawyers, accountants, dentists and doctors.
How you classify your small business is usually determined by how you want your business treated for tax purposes and/or how you want your private life and assets protected from actions taken by your small business.