How to Choose the Business Structure that’s Right For You

At some point in their business planning, most entrepreneurs wonder: “How can I protect myself if things go awry?” Even if they have few personal assets, they may want to avoid the possibility of seeing their name in the caption of a lawsuit, for how can you concentrate on business with that looming over your head? One of the simplest ways to protect yourself is to form a separate business entity. That way, the entity (not you, personally) takes the “hit” from any lawsuit that might occur in the course of your business. That’s also why they are called “limited liability entities,” because they limit your personal liability. Limited liability entities come in many forms including the C-corporation, S-corporation, limited liability company, limited partnership, professional corporation (or, in some states, professional association), limited liability partnership, and professional limited liability company. Think of it like cherry pie, apple pie, chocolate chip cookies, Swiss almond ice cream, chocolate layer cake, raspberry Jell-O®, and rice pudding. They’re all desserts that satisfy a sweet tooth, but are slightly different…