Business Structure

Business structure refers to the legal organization of a company, determining how it operates, is taxed, and the personal liabilities of its owners. Common structures include sole proprietorships (owned by one person), partnerships (owned by two or more individuals), limited liability companies (LLCs) which combine features of partnerships and corporations, and corporations which are separate legal entities. Each structure has its advantages and disadvantages regarding liability, taxation, and regulatory requirements, influencing owners' decision-making, control, and financial responsibilities. Choosing the right structure is crucial for a business's success and growth.