An Introduction to the 4 Common Business Structures CareerMetis.com

An Introduction to the 4 Common Business Structuresâ€" CareerMetis.com Starting a business can bring up a whole mixture of emotions â€" it can be exciting, scary, and often at least a little bit confusing.You don’t need to have achieved an MBA or even gotten any formal business training to start and grow your own successful company, but there are some important choices and decisions that you will need to make, right from the very beginning. This includes choosing your business structure or entity.What are the most common business structures?evalThe most common business structures are:Sole proprietorshipPartnershipLimited Liability Company There is no official registration action required on your part, however, you may still need to consider licensing, permits and other regulations â€" the best thing to do is check on your local secretary of state’s official website. And if you’re planning on doing business under a name that is not your own, you will need to file a DBA If you think that a partnership might be the right structure choice for your bus iness, then make sure that you do it correctly.The best thing to do is to find an attorney who specializes in this kind of business structure and get references from their past and current clients. Partnership agreements can be complicated with lots of gray areas, and a mistake can cause you serious problems further down the line.3) Limited Liability Company Corporations are able to switch from C to S and back again, however, this isn’t allowed often; the IRS has strict rules and guidelines when it comes to how and when these switches can be made.If you want to switch from a C corp to an S corp or vice versa, then it’s best to have a CPA or attorney guide you through the legal requirements.A corporation is the most complex business structure. If you’re starting a small business and are working either on your own or with a small team, then it probably isn’t the right option for you.It is usually recommended for companies that are larger and more established with larger number s of employees, many outside investors, quick scaling, and the intention to sell stocks.Which of these business structures is the right option for you?eval