A look at different types of business structures

| Mar 29, 2021 | Firm News |

If you are preparing to launch a business, you have many different issues to consider. From financing to business partners and market research, starting a business requires a careful review of various factors in order to increase your chances of success. Moreover, you should go over the different types of business structures and weigh the pros and cons of each option.

The decisions you make with respect to the business structure you select and other facets of the business formation process are likely to play a key role in the direction your company takes and your chances of fulfilling your dreams. Moreover, every prospective business owner is in a unique position.

Common business structures

On their official site, the State of Oregon provides an overview of common business structures and the differences between each. For example, some business owners decide to operate as a sole proprietor or set up a nonprofit corporation or business corporation, while others decide to form a limited liability company or general partnership.

How different business structures vary

Business structures vary in many ways. For example, in a sole proprietorship, the owner makes critical decisions, while other structures distribute decision-making control among directors or partners. Some structures involve one owner, while others involve multiple owners or, in the case of a nonprofit corporation, no owners.

The registration requirements vary and there are also key tax differences between these business structures. You need to take a careful look at your needs, goals and the direction of your business in order to determine the best course of action.