The way your business is organized is important because it affects every aspect of your operation, from what you pay in taxes to the extent of your liability and your ability to raise capital. Your options for business organization include sole proprietorship, incorporation, partnership, limited liability corporations and partnerships, and special corporations such as professional and non-profit corporations.
There is a lot of folklore about business structure, so be sure you make a decision only after thorough research and careful consideration of what is best for your business. Remember that you can alter your business structure as your needs and requirements change. You're not locked in to keeping a specific structure if it no longer serves your company.
This overview is designed to assist you in making this key decision by giving you information on the basics of the various business structures. Once you've read it through and done your research, you might want to contact your attorney or accountant and seek his/her input and guidance.
The views and opinions contained herein are not necessarily those of American Express and are intended as a reference and for informational purposes only. Please contact your attorney, accountant or other business professional for advice specific to your business.
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