When making a decision about which business structure to use, answering the following questions should help you narrow down which entity is right for you:
- How many owners will your company have, and what will their roles be?
- Are you concerned about the tax consequences of your business?
- Do you want to consider having employees become owners in the company?
- Can you deal with added costs that come with selecting a complicated business structure?
- How much paperwork are you prepared to deal with?
- Do you want to make all the decisions in the company?
- Are you planning to go public?
- Do you want to protect your personal resources from debts or other claims against your company?
- Are family succession issues a concern?