Choosing the Right Business Structure – What's Right For Me?
When you start a small business, you must decide whether it will be a sole proprietorship, partnership, corporation, or limited liability company (LLC).
Questions to ask: What type of business do you run? How many owners do you have? What is your financial situation?
There is no one choice that suits every single business: Business owners have to select the structure that best fits their needs.
Questions to Ask Yourself
Sometimes the best ownership structure for your business depends on the type of services or products it will provide.
Other times business formation considerations are based on such questions as: Do you plan on going public or issuing shares? Do you plan to have international investors, or any investors at all?
If your business will engage in risky activities you may want to form a corporation or LLC which can provide personal liability protection (limited liability) to shield personal assets from business debts and claims.
