POSTS TAGGED : business structure

5 Types of Legal Forms of Business

One of the things that every entrepreneur struggles with is choosing from the several legal forms of business. Each of these legal forms of business has its own set of advantages.

Legal form filing

Read this post to learn more about the five different business structures and their key characteristics. This will help you identify the right fit for your business.

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The Five Legal Forms of Business That You Can Choose From

Here are the five basic legal forms of business, also known as business structures, that you can form to get started:

1. Sole Proprietorship

A Sole Proprietorship is a legal form of business or legal structure that is owned and run by a single person referred to as the sole proprietor.…

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The Difference Between An LLC And A Corporation

When it comes to forming your new enterprise, there are a lot of different documents that you have to fill out before you can become legal in the eyes of the IRS. The first and most important thing you have to do is determine the kind of entity you want your business to be.

LLC vs. Corporation

Usually, small business owners will compare LLC vs. Corporation, but how do they stack up against each other? Let’s go over some important metrics to find out.

Liability

One of the benefits of starting an LLC or corporation is that the company is separated from your personal assets, including things like debt.…

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To Partner or Not Partner? That is the Question…

When someone starts a new business, one of the first decisions to make is whether or not to form a sole proprietorship or partnership. Partnerships alter the legal structure of the business, taxes and relationships in ways you must consider before you simply assume the best solution is dividing ownership of the business.

To partner or not partner? Shakespeare meme

There are pros and cons of bringing in others as partners instead of hiring them as employees or receiving loans instead of giving away equity.

Paperwork

It is easier to create a general partnership than form a corporation. The biggest risk this creates is personal liability. A corporation is a separate legal entity that has to have its own financial accounts and takes on the financial and legal liabilities of the company.…

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Sole Trader, Limited Company, Partnership or LLP – Which Business Structure is Best?

You’ve got your business idea all sorted. You’ve got a great name ready to register. Now what? You need to decide which legal structure will suit you and your business best.

Limited company

The four most popular ones are sole trader, limited company, general partnership and limited liability partnership (LLP). The decision is actually pretty straightforward when you understand the basic features and benefits of each structure, so we’ll take a look at each one in turn to help you make the right choice for your exciting new venture.

Sole trader

A sole trader is a self-employed person who owns and manages a business as an individual, but they have the option to employ people to work for them.…

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Everything You Need to Know About Choosing The Right Business Structure

If only it were so cut and dry when starting a business, we wouldn’t have all these headaches with paperwork, legal stuff and guidelines to deal with. However, the way business works would be a disaster if we didn’t have these specific legal structures to choose from, namely….

  • Sole Proprietorship
  • Partnership
  • (C) Corporation
  • (S) Corporation
  • LLC (Limited Liability Company)

business structure

That’s a lot to take in, especially if you may not know how they’re all different. Each one has specific advantages depending on the needs of the business. Each one also has certain aspects you must take into account, or else you’re losing money on account of your negligence.…

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