The Legal Structures

1468 Words6 Pages
Using the Small Business Administration website, I was able to research six different types of business structures and determine which one would be the perfect fit for WhataPeach. There is Sole Proprietorship, Limited Liability Company, Cooperative, Corporation, Partnership, and S Corporation with sub-categories among each of these structures. Sole Proprietorship is the most basic type of business to establish. It’s where you own the company as a single owner and are responsible for its assets and liabilities. To pick this legal structure, you alone have to be the sole owner where there is no distinction between you and the business. With Sole proprietorship, although it is the most common structure picked, there are advantages and disadvantages to picking this structure. Advantages include 1) It’s easy and inexpensive to form. This structure is the simplest and least costly to establish, the main costs are mainly limited to gaining the correct licenses and permits to run your business. 2) You have complete control. Being the soul owner of your business, you have complete control over any decisions that are made. You aren’t required to consult with anyone else when you want to make decisions or change things around. 3) You have easy tax preparation. It’s easy to do tax preparation and tax reporting requirements within a sole proprietorship. The tax rates are the lowest within this business structure. The disadvantages include 1) Having unlimited personal liability. You have
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