How do I choose the best business structure for my company?

Choosing the right business structure is key for a successful small business in South Dakota. There are four common types of business structures: Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). When choosing the business structure it’s important to consider your company’s needs. A Sole Proprietorship is an unincorporated business owned and operated by an individual. It is the easiest business structure to form, as no paperwork is needed, but the owner is liable for all business debts. A Partnership is when two or more people form a business. The owners are usually personally liable for the debts of the business. With a Corporation, the shareholders elect a Board of Directors to manage the business. The corporation’s owners are not liable for its debts, unlike in a sole proprietorship or partnership. A Limited Liability Company (LLC) is owned by the members, and the company’s liability is limited to the assets of the business. This is the most popular business structure for small businesses in South Dakota because it is relatively easy to form and the owners are not liable for the business’s debts. The best business structure for your company should be based on your business needs and goals. If you need help selecting the right business structure for your company, it is recommended that you consult with an attorney to get the best advice for your particular business.

Related FAQs

What should I know about contracts and agreements?
What are the laws and regulations for safety and health in the workplace?
What are the laws and regulations for hiring employees?
What are the laws and regulations regarding online payment processing?
What types of taxes do I need to pay as a small business owner?
How do I protect my business against unfair competition?
What should I know about conducting a due diligence review?
What type of financial statements should I keep?
What are the restrictions and obligations for foreign businesses in the U.S.?
What type of legal documents should I keep on file?

How do I choose the best business structure for my company?

Related FAQs

Related Blog Posts