Before one builds a house, they must decide on what type of house they want to build. Will it be a cottage, or a bungalow, or maybe a craftsman? Consideration must be given to its purpose: it wouldn’t be prudent to build a log house in Bermuda nor a beach house in Manhattan. The same thought process applies to deciding which type of legal structure would you need for your business. There are four basic legal structures for business formations: sole proprietorship, partnership, Limited Liability Company, and Corporations. Although we will provide an overview here, please note that the All Legal Hustles team are not lawyers and you should consult a lawyer if you have any further questions. With that bit of legalese out of the way, let’s dive in.
There are four basic types of business entities: