Lesson 5: Business Structures
What You’ll Learn: Choosing the right business structure is one of the most important decisions you can make as you start a business, since it affects your tax liabilities, legal exposure, and potentially, your personal assets. Don’t worry, it’s not as complex as it seems and we’ll take you through the options along with the advantages and disadvantages of each.
Business Structures (continued)
- Think about your own personality, work style and goals. Write them down in a notebook. As you write them down, think about how they would fit in a specific business structure.
- Inventory your personal assets. Each structure offers different levels of protections should your company experience bankruptcy or a successful lawsuit.
- When it comes to decision-making, are you more authoritative or collaborative? Be honest, as this will help inform you in picking a structure that matches your personality.
- Visit the structures comparison chart in The Playbook to see how the different structures stack up in terms of liability, operations, difficulty in formation and reporting requirements.
- Consult an account and/or attorney to find out more about the implications of the specific structure you’re interested in to review your own situation.