Which Business Structure Offers the Best Legal Protection?
Choosing the right business structure is crucial for legal protection. Here’s a brief overview of common structures:
- Sole Proprietorship: This is the simplest form, but it does not offer any personal liability protection. - Partnership: Similar to sole proprietorship but involves two or more people. It also lacks personal liability protection unless it's a limited partnership. - Limited Liability Company (LLC): This structure offers personal liability protection while allowing for flexible management and tax benefits. - Corporation: A corporation offers strong personal liability protection and can raise capital more easily but is subject to more regulations and can be more expensive to maintain.