LLC? S Corp.? Which Business Structure Is Right For You?

One of the most important decisions youll have to make when starting a business is what type of legal structure it should be. There are a few different choices, and the one you pick can greatly affect the way you run your business.

The most important thing is to understand your options, saidJennifer Friedman, CMO of the small business segment ofCT Corp., which provides legal, compliance, incorporation and trademark solutions to businesses. There are a few different lenses to look at when thinking about whats right for you. Each structure has a different impact on the liability the business owner will face.

The most common types of business entities are asole proprietorshipor partnership, where one or more individuals are personally liable for the business; a corporation, which is owned by shareholders; and a limited liability company(LLC), a hybrid structure that allows owners or members to limit their personal liabilities while enjoying the tax and flexibility benefits of a partnership.

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