Do You Have What it Takes to be an Entrepreneur?
Are you an Entrepreneur?
Let's Ask Some Serious Questions
Don't Forget These Important Steps
Do You Know Your Target Market?
Get the Facts from Reliable Sources
Data and Statistics
Ensure You're Operating Within the Limits of the Law
Licenses and Permits
Understanding Your Business Type
Business Types
Business Classification is Key
Business Structures
Don't Overlook the Most Important Step
The Business Plan
Make Sure You're Operating Legally
Choose and Register Your Business
Initial Investments and Location Choice Are Key
Location and Equipment
The Necessary Evil
Paying Taxes

Business Structures

One of the most critical decisions you’ll make is how to structure your business. In the United States, there are several choices, each impacting factors like taxes and personal asset protection in case of a lawsuit. Many will likely start as sole proprietors, but you might consider an LLC, Corporation, or S Corporation if you expand. Carefully weigh your options to avoid potential issues down the road.

Choose Your Business Structure

 The business structure you choose will have legal and tax implications. Learn about the different types of business structures and find the one best suited for your business.

Sole Proprietorship

A sole proprietorship is the most basic type of business to establish. You alone own the company and are responsible for its assets and liabilities. Learn more about the sole proprietor structure.

Limited Liability Company

An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Learn more about how LLCs are structured.

Cooperative

People form cooperatives to meet a collective need or to provide a service that benefits all member-owners. Learn more about how cooperatives are structured.

Corporation

A corporation is more complex and generally suggested for larger, established companies with multiple employees. Learn more about how Corporations are structured.

Partnership

Several different types of partnerships exist, depending on the arrangement’s nature and the partner’s responsibility for the business. Learn more about how these are structured.

S Corporation

An S corporation is similar to a C corporation, but you are taxed only on the personal level. Learn more about how S corporations are structured.

Next Up: The Business Plan