A business structure refers to the legal and organizational framework within which a business operates. It defines the ownership, management, and liability structure of the business, and has significant implications for factors such as tax obligations, decision-making, and the distribution of profits.
Choosing the appropriate business structure is crucial for the success and longevity of any business. It provides a solid foundation for growth, protects the owners’ personal assets, and ensures compliance with legal and regulatory requirements. Different types of business structures, such as sole proprietorships, partnerships, limited liability companies (LLCs), and corporations, offer varying levels of liability protection, tax treatment, and flexibility.
