Business structuring and business law includes those aspects and issues that affect businesses; including, but not limited to, business formation, taxation, business dispute resolution, corporate laws, sales or transfers of businesses.
Business structuring and formation is typically the first, and most common, time that business owners consult business law attorneys. It is important, before starting the actual business, to compare the different possible legal business structures available and decide on the best for your business.
Three of the most commonly used business structures include sole proprietorship, partnership, and corporation.
The sole proprietorship is the oldest, most common, and simplest form of business organization. A sole proprietorship is a business owned and managed by one person; inseparable from the business. Taxes on a sole proprietorship are determined at the personal income tax rate of the owner and the business does not pay taxes separately from the owner. A sole proprietorship is an easy and adequate structure for an individual starting a business that will remain small and does not have great exposure to liability.