Business Structures: 

Choosing a business structure is one of the many major decisions that business owners will have to make when they are considering starting their own small business. 

This decision will impact the financial success of the business, the safety of personal and financial assets, the continuation of a business if ownership changes and taxation. 

Most small businesses start up as a sole proprietorship or partnerships, these are the simplest forms to start up and provide the most flexibility in managing the business. Depending on the success of your business, these structures can be changed. If your business becomes a huge success, you can change to a corporation for example. If you have a partnership and your partner no longer wants to be part of the business, you can buy out his or her share and make it a sole proprietorship. 

 

The most common Business structures are: 

Sole Proprietorship - owned by one person 

Partnership - 2 - 20 partners co-own the business 

Corporation - shareholders are the owners of this business 

Limited Liability Company (LLC) -  flexible form of business that combines components of a Partnership structure  with corporate stuctures.

 

It is important to make yourself aware of the business structures  and what is involved in each structure. This will give you the knowledge you need to choose the right structure and protect your personal assets. 

 

  

  

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