Get CHOOSING THE BEST BUSINESS STRUCTURE

Your business structure affects how much you pay in taxes, your ability to raise money, the paperwork you need to file, and your personal liability. You'll need to choose a business structure before you register your business with the state.

4 Types of Legal Structures for Business: Sole Proprietorship. General Partnership. Limited Liability Company (LLC) Corporations (C-Corp and S-Corp)

Choosing your business structure: What to consider What's your tolerance for risk to personal assets? How do you want the IRS to tax your business profits? How formal do you want your management structure to be? How much administrative complexity can you handle? What are your long-term goals for the business?

Summary. A business structure describes the legal structure of a company that influences the day-to-day operations of a business. A sole proprietorship and partnership are simple to set up since they are not required to meet ongoing requirements such as shareholder meetings and voting.

The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.

There are 4 main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

Typically, there are four main types of businesses: Sole Proprietorships, Partnerships, Limited Liability Companies (LLC), and Corporations. Before creating a business, entrepreneurs should carefully consider which type of business structure is best suited to their enterprise.

Operating as a sole trader is best suited to small businesses operated by one person where issues such as income-splitting is not a consideration. A company structure has several advantages. The primary advantage is that as a shareholder, your liability is limited to the amount you have invested in the company.