Business Formation: Entrepreneurs must juggle countless tasks and competing priorities well before they open their Business, including the creation of a legal structure. Business formation is a necessary early step when starting a business, whether you’re registering a simple DBA, incorporating or forming a partnership.
The way in which your Business is formed will determine the Personal Liability of the founders, how taxes are paid, and other important details. For example, a sole proprietor typically makes decisions on her or his own, while a partner in a partnership must get approval from all other partners prior to making major decisions for the company. The main business legal structures are:
- Sole Proprietorship
- Limited Liability Company (LLC)