N niyati Member Jul 8, 2025 #1 I’m planning to start a business but unsure about the types of business structures available. Can someone explain the main types like sole proprietorship, partnership, or private limited company? Which one is better for small startups?
I’m planning to start a business but unsure about the types of business structures available. Can someone explain the main types like sole proprietorship, partnership, or private limited company? Which one is better for small startups?
J jatin New member Jul 9, 2025 #2 There are several types of business structures, each with its own legal and tax implications: Sole Proprietorship – Owned by one person, simple to set up, but owner is personally liable. Partnership – Two or more owners share profits and liabilities. Limited Liability Company (LLC) – Offers liability protection with flexible tax options. Corporation (C Corp) – Separate legal entity, ideal for larger businesses; taxed independently. S Corporation (S Corp) – Passes income directly to shareholders to avoid double taxation. Cooperative – Owned and operated by a group for mutual benefit. Each structure suits different goals and risk levels.
There are several types of business structures, each with its own legal and tax implications: Sole Proprietorship – Owned by one person, simple to set up, but owner is personally liable. Partnership – Two or more owners share profits and liabilities. Limited Liability Company (LLC) – Offers liability protection with flexible tax options. Corporation (C Corp) – Separate legal entity, ideal for larger businesses; taxed independently. S Corporation (S Corp) – Passes income directly to shareholders to avoid double taxation. Cooperative – Owned and operated by a group for mutual benefit. Each structure suits different goals and risk levels.