Legal structures

Legal structures are the organizational frameworks used for businesses, defining ownership, liability, and taxation. Common types include sole proprietorships, where one person owns and manages the business; partnerships, involving two or more people sharing responsibilities and profits; and corporations, which are separate legal entities that limit owners’ personal liability but may face double taxation. Other options like LLCs (Limited Liability Companies) combine features of partnerships and corporations, offering flexibility and liability protection. Choosing a structure depends on factors like size, goals, and risk, impacting how a business operates and its legal obligations.