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Types of business structures

There are 4 main types of business structures to choose from. They are:

  • Sole-Proprietorship (one owner) or Partnership (two or more owners)
  • Limited Partnership (LP)
  • Limited Liability Partnership (LLP)
  • Company

Refer to this table(PDF 265KB) for more details of each type of business structure.

Factors to consider when choosing a business structure

The type of business structure you choose depends on your business needs. You should consider the following factors to determine the best structure for you:

  • How much capital are you prepared to invest?
  • How many owners will there be in the business?
  • What liabilities and responsibilities are you prepared to assume?
  • What risks are you prepared to take?
  • What are the advantages and disadvantages of the different business entities?
  • Is the business entity easy to close?
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