The legal structure of your business can take four basic forms:
- Sole Proprietorship
- Partnership ("Limited" or "General")
- Corporation, S or C class
- Limited Liability Company (LLC)
Before selecting the legal structure of the business, the following questions should be asked:
- How much money do I need?
- Who will be the source of any needed funds?
- What skills are needed that I cannot provide?
- Are there other people available to round out the necessary skills in starting and continuing a business?
- How much control do I have over the operation?
- How will the business be taxed and how will applicable laws influence it?
- To what extent will I be personally responsible for debts or claims against the business?
- What will happen to the business if I am not able to work for any length of time?
There are many legal and tax considerations that will enter into this decision, so make sure you consult your attorney and your accountant.
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