[Infographic] Differences Of US Legal Business Forms
The first step in starting up a company – registering a business – may sound easy, but aspiring entrepreneurs need to understand that opting for a specific business legal form over others can mean specific unique advantages relevant for the business you intend.
Whether you opt for a sole proprietorship, a partnership, or an S corporation, each have their advantages – as well as limitations – that will affect your business and business growth in time to come, so it is critical that you pick the right one. For example, a sole proprietorship may be the simplest and easiest to run, the entity does not legally differentiate between the business owner and the business which can mean that the entrepreneur is personally liable for any debt the business incurs.
To learn more about the differences – such as advantages and disadvantages – in U.S. legal business forms, checkout this infographic created by the University of Southern California’s Online Master of Laws program:
Daniel Goh is the founder and chief editor of Young | Upstarts, as well as an F&B entrepreneur. Daniel has a background in public relations, and is interested in issues in entrepreneurship, small business, marketing, public relations and the online space. He can be reached at daniel [at] youngupstarts [dot] com.