Business Structures

Before you jump into the business proper, you have to choose the right legal structure for your business. This is very important as the legal structure you choose affects your financial risk, tax and your control over the business.
The business structures are Sole Proprietorship, Partnership and Limited liability.

Sole Proprietorship

This is the simplest form of business structure to form and operate. You as the owner are all in all of the business. Your personal and business affairs are intertwined.
You alone bear all the risk and are liable for all debts and obligation of business.

Partnership

This type of business allows for two or more people to join forces and set up business together. They share the risk, liability and profit of the business.

The share percentage of the business should be determined at the initial startup stage by both parties agreeing to go into business. It is advisable that there be a written agreement as to how the partnership will be termed.
Please note that it is highly recommended that you partner with people you can trust and will be able to work with and can add value to your business.

Limited Liability

This is a corporate structure. Under this form of business structure, you are able to keep the business from your personal affairs and investors are able to invest in your business due to its business structure.

It is very important that you consult with an accountant or a lawyer to know before hand the financial and tax implications of the business structure you decide to choose.

This is to the success of your business.