A Business Entity Structure Like Limited Liability Company

1177 WordsJun 13, 20165 Pages
In today’s era they’re many business structures like sole proprietorships, partnerships, limited liability companies (LLC), and corporations in which individuals uses to start their own business. Any types of business structure that you may choose will have legal and tax implications (SBA, 2016). If I were to start my own business, I would choose a business entity structure like Limited Liability Company (LLC). A limited liability company is a mix type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership (SBA, 2016). Types of Business Structure There are several business structures that one could use to start a new business and to make a present business much more operative and inclusive. The business structures that will be talked about in the paper are: • Sole proprietorship • Partnerships • Limited liability companies (LLC) • Corporations Sole Proprietorship A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016). Someone who owns an independent business is usually a sole proprietor. They are no legal action needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible for all your business’s debts, losses and liabilities (SBA 2016). Steps to form: Sole proprietorship is a popular business form due to its simplicity; ease of setup and at minimal cost (Staff, 2016). You must obtain required
Open Document