Entity Structure

Entity structure refers to how a business or organization is legally organized and categorized. It determines the ownership, tax responsibilities, and legal obligations of the entity. Common structures include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). The choice affects how profits are taxed, how liability is shared, and the ease of raising capital. Essentially, entity structure shapes the legal and financial framework within which a business operates, influencing everything from daily operations to long-term growth.