Legal Entity Basics Understanding Your Business Structure
Introduction
Understanding the basics of legal entities is crucial for entrepreneurs and business owners. Your business structure not only impacts your day-to-day operations but also affects your liability, taxes, and governance. In this article, we’ll explore the fundamentals of legal entities and how they shape your business structure.
Types of Legal Entities
Legal entities come in various forms, each with its own set of characteristics and implications. Common types include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). Sole proprietorships are the simplest form, where the owner and the business are considered one entity. Partnerships involve two or more