One of the very first steps of starting and running a business is choosing a legal structure for your business.
This is arguably one of the most important steps, as this decision can determine how you can raise capital, how your business profits are taxed, the level of personal liability you will have for obligations of the business, and the amount of paperwork your business is required to do.
There are three common structures that you will most likely consider for your business; these are sole proprietorships, partnerships, and corporations. In addition, other legal forms include limited partnerships, limited liability partnerships, and unlimited liability corporations. Each legal structure is distinct and carries its own advantages and disadvantages. It is recommended that you seek guidance from your legal advisor when deciding which legal structure is right for your business.