The form that your business is categorized as is a very important decision that you should not take lightly. As you start your business and set the stage for your company's future, you will operate as either a sole proprietorship, partnership, limited liability company, corporation, or pass-through or corporate entity.
When setting up your business, you will need to establish your company under one of many business structures. The business structure you choose will influence everything. From your day-to-day operations and taxes to how much of your personal assets are at risk and everything in between, it's important to consider structures with a reasonable balance of legal protections and benefits.
If you own a business, you may find yourself imagining that moment when your company's stock is listed on an exchange. It's a great goal, but there's a lot to think about first. Don't consider going public unless all or most of the following are true:
Each type of business entity has pros and cons as well as tax consequences. This article offers some basics about two of the most popular business formats: sole proprietorships and partnerships.
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