Choosing the Right Business Structure: 4 Factors to Consider

Starting a business can be an intimidating process especially, navigating the legal process of making your business official. When starting a business, several factors must be considered. One of the most important choices is deciding what structure best suits your business. When taking the leap and starting a business, contact an experienced attorney to help.

What Are Some of the Most Common Business Structures?

New businesses typically fall under one of the following structures:

While this list is not exhaustive, new business will most likely be structured as one of the entities listed above. Still, choosing the right structure is perhaps the most important step in the initial phase of setting up your business.

4 Factors to Consider When Choosing a Business Structure:

 It is important to have a basic understanding of the different benefits of each type of business entity. Knowing the ways in which business structures are different can help make an informed decision. The following are four factors to consider when selecting a business structure:


Depending on the type of business consider the expectations for how the new business will grow and change. Make sure the structure will allow for flexibility for the company to grow and evolve. An LLC has the most flexibility in terms of growth potential, while limiting the amount of risk and liability.


A new business will carry some liability in terms of personal investment and finances. Insurance, credit, and other assets must also be considered when structuring the business. A corporation offers the most protection from liability; however, an LLC provides the same protections, but it may also offer the tax benefits of being considered a sole proprietorship.


Hopefully, the company business plan allows for growth. Even if the company has a sole owner and operator, there is potential for expansion if the business becomes more successful. As the business grows, however, so will the potential risk and tax liabilities.


If full control over the business and its activities is important, a sole proprietorship may be the best structure to choose. Full control also means full liability. Sole proprietorship allows for responsibility for potential lawsuits, taxes, and loss.

If you are considering starting a business, contact an experienced business attorney to guide you through the process.

What Business Structure Is Best for Me?

Taking these factors the type of structure generally depends on the type of business. If the business is largely a hobby like photography, writing, or video production, a sole proprietorship may be best. On the other hand, if the business will have a large customer base with fast potential for growth, consider an LLC or corporation, as these two provide the most protection with the lowest risk of personal loss. There are also tax issues to consider.

Contact the Business Attorneys at Rosenblatt Law Firm to Help You Choose the Right Business Structure for You

Our team at Rosenblatt Law Firm has set up hundreds of entities and decades of experience in helping clients create businesses and helping entrepreneurs get started on the right track.

Any successful business starts out with a strong foundation, and the attorneys at Rosenblatt Law Firm can make sure your business starts on the best possible footing for future success. Our attorneys are steeped in knowledge and experience when it comes to the first steps of starting a business. If you would like to get your business off the ground, call us today at (210) 562-2900 or contact us through our website.

Sign Up For Our Newsletter