What are the Common Legal Structures for a New Business?
Choosing the right legal structure for your business is one of the first and most critical decisions you'll make. Common structures include:
- Sole Proprietorship: Simplest form, owned and operated by one individual. - Partnership: Owned by two or more individuals, with shared profits and liabilities. - Limited Liability Company (LLC): Offers liability protection with tax benefits. - Corporation: A more complex structure with significant regulatory requirements but offers the highest level of liability protection.
Each structure has its own set of legal implications, tax obligations, and regulatory requirements. Consulting with a legal expert can help you choose the best option for your business.