One of the first legal decisions an entrepreneur must make is choosing the right business structure. Common structures include:
1. Sole Proprietorship: Easy to set up but offers no personal liability protection. 2. Partnership: Involves two or more people sharing profits, losses, and liabilities. 3. Corporation: Provides liability protection but is more complex and costly to set up. 4. Limited Liability Company (LLC): Combines the benefits of both corporations and partnerships, providing liability protection without the complexity.
Each structure has its own set of legal implications, tax considerations, and regulatory requirements.