Business Structures

Choosing a business structure is one of the most important decisions you will make as an entrepreneur. After you have developed your product or service, prepared the projections necessary to see if it will succeed in the marketplace, and checked zoning bylaws to ensure that the planned operation of your business will not contravene any municipal regulations, you must decide what kind of business structure is required to carry out the day-to-day activities.

This decision can have major consequences on your protection under the law on the way income tax rules will affect you.

There are three basic legal business structures: sole proprietorships, partnerships and corporations. In addition you may register as a society/not-for-profit or a cooperative.