Careful consideration should be given to a company’s legal structure. Some questions to ask:
How many owners will there be?
How important is it to limit personal liability for debts or claims against the business? In general, incorporating is the best means of limiting liability.
Which business structure will result in the lowest taxes? There is no universal answer to this question. Tax-wise, however, some structures are better than others.
Use the links below to view definitions of these legal business structures.
See a comparison chart on the advantages and disadvantages of different business structures. Content for this comparison chart was
drawn from the US Small Business Administration and other sources.
