The Pros and Cons of Different Business Structures
Whether you’re starting a new small business or trying to expand an existing one, it’s important to consider the legal structure that is the best fit. The choice generally depends on the specific type of business you’re in, the number of owners or investors you have, and the potential impact of tax and liability concerns. Making the smart choice could save you money, not to mention serious legal consequences, so take the time to understand the difference between the three main options and the advantages and disadvantages of each. Sole Proprietorship The most basic type of business structure, a sole proprietorship is best suited to new businesses, particularly small scale operations. Profits go directly to the sole owner, but that person is also liable for any debts the business incurs, with no protection for personal assets......
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