As a small business owner, choosing the right business structure is vital for your business’s growth. Just as there are different types of businesses, there are different types of business structures.
To understand what business structure will benefit your new business, you’ll first want to create a business plan that outlines your company’s goals. For example, if your goal is to use your business for charitable purposes, you would want to file with your state as a tax-exempt organization.
The most common types of businesses are: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, and S corporation. Legal and tax considerations enter into selecting a business structure, so you should always discuss your options with an attorney or CPA.
