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How to Choose a Legal Structure
Choosing a legal structure (also called a business ownership structure or business form) is one of the first things an entrepreneur does when starting a business. Choices include LLCs, partnerships, sole proprietorships, corporations, non-profits and co-operatives. This decision hinges on liability issues, tax obligations, investment needs and other factors; but the key is to find the best fit for your organization. The following resources will help you decide which legal structure is best for your business by examining the pros and cons of each, relevant investor issues and more.
Overview:
- Business Ownership Structures - Descriptions of the different types of legal structures.
- Choosing the Best Structure for Your Business - What to consider when choosing a legal structure.
- Picking a Business Form: Ten Considerations - Cost, risk, capitalization and seven other important factors.
- Choosing a Business Form: Dos and Don'ts - What to do and what not to do when choosing a legal structure.
- Choosing a Business Form: Five Investor Issues - Important investor issues to consider when choosing a business form.
- Ten Reasons to Call a Lawyer Before Choosing a Legal Structure - How attorneys can help with business formation.
See also:
- Qualifying to Do Business Outside Your State - Basics of doing business outside your state as an LLC or corporation.
Pros and Cons of Different Structures:
- Business Structure Pros and Cons: Overview - Main benefits and drawbacks of each legal structure.
- Business Structures and Management - Benefits and drawbacks of managing various business forms.
- Business Structures and Taxation - Tax advantages and disadvantages of various business forms.
What to Expect with Different Structures:
- Amount and Timing of Investments - The investment implications of various legal structures.
- Business Forms and Federal Taxes - Federal tax implications of the different legal structures.
- Business Liability - Chart illustrating the liabilities of various business forms.
- Drafting and Filing Documents - Paperwork requirements for different business forms.
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