What are the key legal structures for a new business?
When starting a new venture, selecting the appropriate business structure is crucial. The most common structures include Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation. Each structure has its own implications for legal liability, taxes, and the level of administrative work required. For instance, a Sole Proprietorship is easy to set up but offers no personal liability protection, whereas an LLC provides limited liability protection but requires more formal paperwork.