Why is Choosing the Right Business Structure Important?
The business structure you choose affects various aspects of your venture, including:
Liability: Some structures offer personal liability protection, reducing your risk in case of business debts or legal issues. Taxation: Different structures are taxed differently. For example, corporations face double taxation, while sole proprietorships and partnerships have pass-through taxation. Management and Control: Structures like corporations have formal management roles, while LLCs and sole proprietorships offer more flexibility. Funding: Corporations can raise capital by issuing stocks, making them attractive to investors.