Business Structuers
Business structure refers to the legal structure of an organization that is recognized in a given jurisdiction. An organization’s legal structure is a key determinant of the activities that it can undertake, such as raising capital, responsibility for obligations of the business, as well as the amount of taxes that the organization owes to tax agencies.
Overview:
Before making a choice on the type of legal structure, business owners should first consider their needs and goals and understand the features of each business structure. The four main forms of business structures in the United States include sole proprietorship, partnership, limited liability company, and corporation.
Summary
- A business structure describes the legal structure of a company that influences the day-to-day operations of a business.
- A sole proprietorship and partnership are simple to set up since they are not required to meet ongoing requirements such as shareholder meetings and voting.
- A corporation and a limited liability company provide limited liability protection to their owners, which serves to prevent the owner’s personal assets from being sold off to settle the entity’s debts and liabilities.
Legal Guidance Customized for Your Business Needs
Before making a choice on the type of legal structure, business owners should first consider their needs and goals and understand the features of each business structure. The four main forms of business structures in the United States include sole proprietorship, partnership, limited liability company, and corporation.