Choosing the Right Legal Form for Your Business

Wednesday, January 29 at 08:15 AM
Category: Business Banking

Choosing the appropriate legal form for a business is one of the first issues most entrepreneurs face. It is an important decision at the formation stage and also as a business grows. Sole proprietorships usually are the easiest. Corporations offer some different advantages, but often with additional complexity.

This article addresses some of the pros and cons of different types of legal structures for businesses. Even if your business has been in existence for a while, it may be time to review your options. There can be many complexities in determining the best legal structure and a qualified attorney may be of value when evaluating your choices.

At a minimum, consider the following issues when evaluating the business structure decision:

  • Number of owners
  • Personal liability of owners
  • Tax treatment
  • Control and management
  • Capital contributions

Here is a chart that provides some of the basic information to consider.

There is no one-size-fits-all solution for the structure for a business. Carefully evaluate your options and speak with a qualified professional to determine which structure is best for your company.

The views of this article are for general information use only. Please contact and speak with a subject expert when specific advice is needed. Find articles like this and much more in the online
Arvest Biz Center.

Tags: Arvest Biz, Business Banking
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