A business startup is actually incomplete without the decision of its structure. The structure of a business has a lot to say about its legal position and size of the organization and number of members (with every option having its own set of details). It is highly important to keep in consideration all the pros and cons associated with the options so the decision could be made keeping in view all the necessary aspects. The amount of formalities, taxation and liabilities all depend on the type of business structure that is selected.
The nature of business and its future goals also play an important role in selection of business structure. There are three main types of business structures widely followed.
The one man show – Sole proprietorship is said to be the simplest business structure. It is also one of the most common forms of business as it is easy to form and dissolve; also the proceedings are rather simple and not much regulations to follow. Not only it is simple to form, it also seldom gets complicated if run smoothly. But the sole proprietor is responsible and personally liable for any loss, as he/she benefits from all the profits.