What questions should you consider in choosing a business structure for your new business?
- There are generally 5 types of business structures you can choose from if you’re starting a new business for profit:
- Sole proprietorship
- General Partnership
- Limited Partnership (LP)
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
- To decide which business structure is most suitable for you, you will need to consider the following factors: –
- How much capital you are prepared to invest?
- How many owners there will be in the business?
- What liabilities and responsibilities you are prepared to assume?
- What risks you are prepared to take?
- Whether a company of that structure will be easy to close?
