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Choosing Your Business Structure Matters

When you are starting a new business, you are wise to make sure you are starting off on the right foot. That means choosing the right kind of structure for your business. The type of business structure you choose for your company will have important ramifications on multiple levels: exposure to personal liability; exposure to company and personal taxes, structure requirements and paperwork.

Businesses are formed as four basic types:

sole proprietorship


limited liability


These four types of business structures each have their own requirements and costs that can be tweaked for the best tax exposure or business liability. That said, it is important to have a grasp of how each type of businessis different from the next and which is the best choice for you.

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