Structuring your business correctly is one of the most important steps to starting a business. Do not rely solely on this brief overview; contact an attorney or professional advisor for additional guidance.

Each business type has advantages and disadvantages, as does determine the ownership and management structure. These decisions will determine what paperwork is required, which tax return forms need to be filed, and personal liability — to name a few. You should consider how the business should be formed now, but also consider future plans you may have for your business.

The four most common business structures are:

1. Sole Proprietorship
2. General Partnership
3. Limited Liability Company
4. Corporation

For more information on determining the best structure for our business, visit Choose a Business Structure - Maryland Business Express (MBE).