In This Chapter
Choosing the legal form for organizing your business is one of the important decisions you must make before launching the business. Because of changing laws, entrepreneurs today have many more choices regarding how to structure their companies. Your need for capital and protection from liability are just two reasons why understanding the options available to you is so essential.
Those changing laws are also a good reason for seeking the advice of a good attorney or CPA to make sure you're making the best choice for you and your type of business.
This chapter gives you a solid background on what you need to think about before choosing a legal form of business and what you need to understand about of the various forms available to you.
All companies operate under one of four broad legal classifications:
Many entrepreneurs assume that the best entity is always one that lets profits pass through to the owners at their personal tax rate. They further assume that incorporating in your home state is always best. These assumptions can be wrong for some entrepreneurs and for some businesses.
For example, if you know that you want to ...