Have you ever wondered what type of business legal structure you should choose for your business?
When you decide to start a business, one of the most important decisions you have to make is choosing a legal structure for your business.
The type of legal structure you choose holds the key to how you will ultimately run your business according to government requirements.
Your entity type will determine the type and number of tax return(s) you are required to? Ie, how you are required to pay yourself and your workers, the type(s) of forms, and data the government and other third parties will request from you in the event that you have to provide financial data.
It also determines how you handle your bookkeeping and the way you communicate with the IRS.
The most common types of legal structures are as follow: Sole Proprietorship, Partnerships, Limited Liability Companies (LLC) and Corporations.