Choosing the right legal structure is one of the first decisions an entrepreneur must make. Common structures include:
- Sole Proprietorship: Simplest form, but the owner is personally liable for debts. - Partnership: Involves two or more people sharing profits, losses, and liabilities. - Limited Liability Company (LLC): Offers liability protection to owners while retaining some benefits of a partnership. - Corporation: Provides the strongest protection from personal liability but is more complex and costly to set up.