What type of business structure should you establish? Today, we’ll explore the various possibilities available and when or why you might need each one at various levels of your entrepreneurial journey.

Deb and I discuss the types of business structures you might want to explore for your business. To make the best choice for your business needs, consider taxation and liability and whether you have employees.

In this episode, listen for:

• If you have employees as a sole proprietor, you are opting for an increased level of liability. As the owner, everything falls on you. [11:55]
• If two unrelated parties are working together, a partnership agreement should be written out as a preventative measure. In the event of problems, what would happen?[16:53]
• A limited partner is a co-owner, but more importantly, he or she provides funding to help you run the business. If you own less than 20%, you cannot participate in operations; but, if you own over 20%, you are designated a partner. [17:56]

Your business structure is determined by how you choose to run it, the source of funding, and the level of liability.

A sole proprietorship may be a more straightforward business structure, but only if you are the sole proprietor. When others exert control over revenue, you may wish to reconsider your chosen structure. Do your research, seek professional advice, and decide based on your best interest.

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