This post was originally published on On Deck
Deciding on a business structure is a big step when starting a new business. It will affect your taxes, personal liability, how you raise capital, day-to-day operations and more. It’s an important decision, but it can be hard to know which is the right option.
Luckily, with the right information you can be more confident in determining a business structure. Keep in mind, it’s also a good idea to consult with professionals, like accountants and attorneys, who can offer personalized guidance and advice.
What is a business structure?
A business structure is the way your business is organized. It determines many aspects of your business, including:
Legal liability Taxation Operational flexibility Ownership and roles
The Internal Revenue Service (IRS) requires most businesses to classify their structure when registering with their secretary of state. Keep in mind that your choice isn’t always permanent, and this could likely change as your business grows and evolves.
What are some of the different types of business structures?
Let’s break down some common types of business structures. You should also keep in mind that the laws, regulations and requirements for these common business structures may differ from state to state. Research your state’s
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