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One of your most important decisions will be choosing how to organize your business. There are basically three forms of legal structure: proprietorship, partnership, and limited company. You should seek competent legal and accounting advice before deciding on your business structure, as there could be distinct advantages or disadvantages to each depending on your situation.

Many entrepreneurs start out as a sole proprietor, as this is the easiest way to start a business.

Setting up a partnership means you can share the work, but there is a danger that conflict will occur when two or more people share decision making but have individual dreams and goals. It is common for such arrangements to have problems and dissolve.

Forming a corporation is a third option. The corporation can be owned by just one person (similar to a proprietorship) or two or more people (similar to a partnership).

This section discusses the factors that you and your professional advisers should examine when making a decision about your business structure.