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What type of business structure should I choose before I launch my business?
Home » Entrepreneurship » Launching a New Business » What type of business structure should I choose before I launch my business?What type of business structure should I choose before I launch my business?
The first step you must take in launching a business is to decide on the form of business organization, or structure, that will be better for you. A Sole Proprietorship is a business in which one person furnishes all the capital and assumes all the responsibility. A Partnership is between two or more general partners, each personally responsible for all the debts of the firm and their own taxes. A Corporation consists of shareholders who buy stock in the corporation and the corporate shield can protect the shareholders from personal liability. An LLC is the same as a partnership except partners have limited liability, similar to the corporate form. A Non-Profit organization is one that, by law, is unable to hold profits like a "for-profit" organization can. Any “profits” are redistributed back into the company in the form of salaries, equipment, etc. The organization is run by a board of directors who are appointed or elected.
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