Business Formation Of A Business

700 Words3 Pages
There are many different types of business organizations that an entrepreneur needs to consider as he or she is starting their business. Business formation is a necessary early step of a starting a business because an entrepreneur needs to know and understand the differences in creating a legal structure for their business. The way that an entrepreneur structures its company, it will have a significant impact on the business’ tax liability, management and the personal liability of the owners should there business ever be sued. In the article from Laurence, she states that “the more you know about starting a business, the more power you have to form an organization that develops into a lasting source of income and satisfaction.” Therefore, the most common ways to organize a business would be to consider the following options, sole proprietorship, partnership, limited partnership, limited liability company (LLC), corporate (for-profit), nonprofit corporation (not-for-profit), and cooperative. Many business owners decide that the initial ownership is either a sole partnership or if ...
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