The process of registering a company with the state varies, depending upon the business formation structure chosen by the founders of each new enterprise. There are four primary company structures available to aspiring business owners. If you are hoping to launch a new business venture soon, it will be important for you to weigh the pros and cons of each opportunity before committing to one over the others.
Sole Proprietorships
Sole proprietorships are owned by one individual, whereas partnerships involve multiple owners. These business formation opportunities offer particularly flexible managerial structures and do not require much work to set up. They are taxed on the individual returns of each owner and do not require much, if any, reporting to the state. They are often particularly appealing for low-risk, local business enterprises. Sole proprietorships do not offer any personal liability protection in the event that the company gets sued or falls behind on its financial obligations.
If you are the sole owner of your business and do not establish another business structure, your business is automatically considered a sole proprietorship.
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