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The Most Popular Business Structure for Recruiters

by | Feb 24, 2011 | Recruiter Training, Top Echelon Blog

Okay, so we do like to tease you with headlines similar to the one above, but that’s one of the great things about the surveys that we conduct at Top Echelon.  We ask recruiters all across the country questions about their recruiting firm and their recruiting process, and then we publish the results.  We believe that the information we gather will be of interest to other recruiters and might help them to make changes in their own firm that could be of benefit to them.

Our most recent survey was about business structure—in other words, how recruiters choose to structure their firm or their business.  Recruiting firm owners have many choices in this area, and like guarantees, there are a lot of factors involved when it comes to which one they ultimately select.  With that in mind, we asked recruiters the following question in our recent survey:

How is your recruiting business structured?

We offered recruiters five answers to this question.  Those answers, along with the percentage of recruiters that chose each answer, are listed below:

  • Sole Proprietorship—21.8%
  • Partnership—2.1%
  • Limited Liability Company (LLC)—21.8%
  • C Corporation—13.3%
  • S Corporation—41.0%

As you can see, “S Corporation” was the most popular answer, by nearly a two-to-one margin over “Sole Proprietorship” and “Limited Liability Company.”  I’ll delve more deeply into the specific reasons that over 40% of recruiters choose to structure their recruiting firm as an “S Corporation” in a future blog post.  In the meantime, I’ll put the question to you.

If you’re a recruiting firm owner, how is your business structured?  Is it an “S Corporation,” a “Sole Proprietorship,” or a “Limited Liability Company”… or is it something different from the answers that we provided to our survey question?  As always, we value your feedback.

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