Choose a Legal Structure for Your Business
What is a business legal structure?
Businesses in the United States are legal entities defined by city, state, and federal laws. The legal structure of a business can vary. Some businesses are structured as corporations, some as limited liability companies, some as sole proprietorships, and so on.
In order to start your business, you’ll need to work with a lawyer and/or attorney to decide on an appropriate legal structure and prepare the necessary documentation.
Why is it important to choose the correct legal structure for my business?
There are many legal and financial issues to consider when choosing a legal structure for your business. The right legal structure can help limit your liability and protect your personal assets from bankruptcy. Your legal structure can also influence the way your business is taxed and the way it carries out day-to-day operations.
How do I decide which legal structure is right for my business?
There are many factors to consider when determining an appropriate legal structure for your business, and it’s best to consult with a business counselor, attorney, or accountant before making a decision.
The Small Business Administration is a great resource for learning more about possible legal structures for your business.