Types of business entity
Your choice of business entity is one of the most important decisions to make when starting your new business. This decision affects the amount time it takes to have your business incorporated, how much your company pays in taxes. The liability you face in the course of doing business formation and how you can raise money for the business formation.
One should consider these factors when choosing the type or any business formation:
- How liabilities from the company affects your personal assets.
- Attracting the right investors.
- The cost of operations.
There are many types of business entities one can choose from, they have their advantages and disadvantages. It’s important that one weighs the advantages against the disadvantages as they apply to the business of interest.
Let’s take a look at the different types of business entities one can choose from.