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There are four main types of business structures in the U.S.: sole proprietorship, partnership, limited liability and corporation. Each structure has different tax, income and liability implications for businesses owners and their companies.
Sole proprietorship, corporation, LLC: Try them on for size to find out which legal structure will best suit your business. Of all the choices you make when starting a business, one of the most important is the type of legal structure you select for your company.
The most common business structure type is a sole proprietorship. A sole proprietorship is owned and operated by one person, a sole proprietor. A sole proprietorship is a good option if you are looking to have complete control of your business.
Legal structure of a small business options According to the IRS, there are five business structures to choose from: Sole proprietorship. Partnership (general, limited, or limited liability partnerships) Limited Liability Company (single-member or multi-member LLC)
Choosing a Legal Structure. One of the most important choices you will make when forming your new business is which legal structure to choose from. Also called a business ownership structure or business form, choices include LCS, partnerships, sole proprietorship, corporations, non-profits, and co-operatives.
A business structure is a category of organization that is legally recognized in a given jurisdiction and characterized by the legal definition of that particular category. A corporation is a large and complex organization that is owned by its stockholders.
The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
Business Ownership Structures. When forming a business, its legal structure is one of the owner's most important practical decisions. Each type of structure has its own benefits and considerations that are affected by the business' size, the number of owners and employees, the industry, and other variables.
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