What are the basic legal structures available for startups?
When starting a new business, entrepreneurs must decide on a legal structure. The most common options include:
Sole Proprietorship: This is the simplest form of business structure and involves a single owner who is responsible for all debts and liabilities. Partnership: This involves two or more individuals who share ownership and responsibility for the business. Limited Liability Company (LLC): This structure provides limited liability protection to its owners while offering flexibility in management and tax benefits. Corporation: A more complex structure that offers limited liability to its owners but requires more regulatory compliance and formalities.