When an entrepreneur starts a new business, one of the first decisions he or she is confronted with is the choice of business structure. This decision can be ongoing. As your business grows and changes, you may struggle with what is the best business structure at each stage.
There are a wide variety of business entities to choose from and they vary from state to state. Which type of entity you choose will have a significant impact on your exposure to liability, your responsibilities as the business owner, and the taxes you and the business will be responsible for paying. Each type of structure has advantages and disadvantages, and should be chosen with care after consulting a business or legal professional.