Believe it or not, the planning phase of starting a business ends with choosing a business structure. In order to choose your business structure you should know what product or service you will provide, in which geography, to which client segment, through which channel (for example, a brick & mortar shop, online), at what price, and more importantly with whom you would like to conduct the business. Some of the key questions include :
• Do you want to start out on your own and be the sole beneficial owner?
• Will you co-found your business with a partner?
• How do I want to be taxed?
• How much will I earn?
The choice of business structure will have personal, legal, and tax implications. Examples of business structures include :
• Sole Proprietorship
• Partnership
• Limited Liability Company (LLC)
• Corporation – C Corp
• Corporation – S Corp
• Corporation – B Corp
• Corporation – Non Profit
For additional information, refer to Small Business Administration’s Choose a business structure webpage.
