What Legal Structures Can an Entrepreneur Choose From?
Choosing the right legal structure is crucial as it affects your taxes, liability, and ability to raise capital. The most common structures include:
Sole Proprietorship: Easy to set up but offers no personal liability protection. Partnership: Involves two or more people; liability is shared among partners. Limited Liability Company (LLC): Offers liability protection and flexible tax options. Corporation: Provides strong liability protection but is more complex and costly to set up.