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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)
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?