question.jpgIn Business Law

What type of business should I set up?

The four basic choices you have for how to organize your business are:

1. Sole proprietorships.

2. Partnerships.

3. Corporations.

4. Limited liability companies (LLCs).

There is obviously a lot that goes into your decision based on the pros and cons of each business type as well as the circumstances of your particular situation. In addition, you may want to meet with an attorney and/or a tax professional, as the legal and financial ramifications of each business entity may ultimately dictate which way you go.

For many people, the best initial choice is a sole proprietorship or a partnership, because these are relatively cheap and easy to setup, and they are also relatively easy to maintain. But if business liability is a concern, a corporation or limited liability company may be more attractive to you, as they generally provide you with more protection against personal liability.

For more information, please review the QuizLaw sections for each of these business types.