One of the first decisions that you will have to make as a business owner is how the company should be structured.
Deciding the form of ownership that best suits your business venture will have long-term implications and should be given careful consideration. Use your key advisors to assist you in the process and consult with an accountant and attorney to help you select the form of ownership that is right for you.
In making a choice, you will want to take into account the following:
Your vision regarding the size and nature of your business
Level of control you wish to have
Level of structure you are willing to deal with
The business's vulnerability to lawsuits
Tax implications of the different ownership structures
Expected profit (or loss) of the business
Whether or not you need to re-invest earnings into the business
Need for access to cash from the business, for yourself