Starting a business is a challenging and rewarding process. creating a business plan; choosing a name; customizing a website; Finding your products and finding your first customers are often the fun parts of running your company.
But just having a website and a logo isn’t enough to start a business. in fact, As a business owner, it’s important to have the proper foundation and structure in place for your business to succeed—and to protect yourself if something goes wrong.
Types of Business Structures
Each type of business has its benefits, but some types of business are better suited for different company structures. It involves additional administrative steps, but you can change your business structure as your business evolves over time.
Proprietary
A sole proprietorship is a business incorporated without legal distinction between the company and the individual who owns and operates it. It is the simplest business structure and is simple to set up and manage.
Advantages of sole proprietorship:
- Low taxes. by sole proprietorship; You only have to file your taxes once. An LLC requires you to file separate state and federal taxes. The company does not pay taxes, but the owner does.
- Take complete control of your business. You don’t have any partners or investors to consider, so you can decide on any business as you wish.
- It’s easy to change your configuration in the future. If you are starting a sole proprietorship; You are not related to that company structure. You can switch to another business type at a future date whenever you’re ready.
Disadvantages of Sole Proprietorship:
Unlimited personal liability. with sole ownership; Taxes are levied on the individual who owns the company. There is no distinction between the individual and the company, so the risk is added, so the individual has unlimited liability for whatever the company does.Thus, the individual’s personal assets are on the line. Exposure to personal liability does not sit well with many profitable business owners.
