What Business Structure Is Right For My New Business?

After lots of dreaming and planning, you’ve decided to start a business. You’ve chosen a name, identified target customers and have a color scheme for your website ready to go. But before you get too excited, there are many additional considerations to be made. One of the most important is deciding on a business structure for your enterprise.

Why Your Business Structure Matters

According to the Small Business Association (SBA), your business structure impacts:

• paying taxes (no longer your employer’s responsibility)
• personal liability (your business may incur debt or be sued)
• paperwork filing required
• raising capital

Decide Early

The SBA stresses the importance of choosing a business structure as soon as possible as many other important pieces of your business hinge on it. Without knowing your structure, you can’t:

• register your business with your state
• apply for a tax ID
• open business banking accounts (the tax ID is a requirement for this)

While you can change your business structure down the line, the SBA cautions that this may not be a simple…