When starting a new business, one of the first decisions you must make is what legal structure you
should choose for your business. Your choices are sole proprietorship, partnership, corporation or LLC. Which structure you choose will depend on the type of business you run. The major factors to consider include:
• The potential risks and liabilities of your business
• Income taxes
• Investment needs
• The formalities and expenses involved in establishing the business structure Below is a review of the most common legal structures for businesses and some of the advantages and disadvantages of each. The decision of what legal structure to select may be very complicated,therefore, it is recommended that you consult an attorney and/or tax professional before deciding which structure is best for you.
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