Business Structures

Business structures refer to the legal organization of a business, which affects liability, taxes, and decision-making. Common types include sole proprietorship (owned by one person), partnership (owned by two or more), LLC (Limited Liability Company, offering liability protection while maintaining flexibility), and corporation (a separate legal entity that can raise capital through stock). Each structure has pros and cons regarding responsibility, taxation, and management. Choosing the right structure depends on factors like size, goals, and risk. Properly selecting and understanding your business structure ensures legal compliance and can impact growth and profit.