Choosing a business structure – Get to know the characteristics and compliance requirements
The choice of business entity can significantly impact the steps necessary to comply with state regulations.
For each type of business structure there are unique formation, management, and compliance requirements to be met. This holds true for a limited liability company (LLC), limited partnership, limited liability partnership, C corporation, S corporation, sole proprietorship or general partnership.
When choosing the right business structure, it's essential to consider the specific needs and goals of your company. Each entity type comes with its own set of formation, management, and compliance requirements. For instance, you may need to appoint a Registered Agent or file annual reports. Additionally, key considerations include whether to take advantage of pass-through taxation and how to avoid personal liability for business debts.