What are the Legal Structures Available for Entrepreneurs?
When starting a business, one of the first decisions an entrepreneur must make is choosing the appropriate legal structure. The main options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own legal implications, tax considerations, and degree of personal liability. For instance, a sole proprietorship is simple to set up but offers no personal liability protection, whereas an LLC provides limited liability but requires more formalities.