What Type of Business Do I Need

Determining the business structure

the most common

Sole proprietorship

This structure is most commonly used when your personal taxes and expenses are attached to your business, leaving you completely open to potential legal issues. Note: You are not allowed to hire employees when using this structure.

Limited liability Company

A unique legal structure in that you get the tax perks of a partnership while receiving a corporation’s liability protection. When you own an LLC, you’re protected from personal liability for company problems. Owners are not responsible for paying taxes directly, they are all reported on the owners income tax returns. Can also be a LLP (partnership).


A corporation shares ownership amongst a number of shareholders. Owners are actions are accountable to their shareholders.


Involve at least two people who share ownership in the company. They are responsible to each other only.

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