Watch a video summary on Different Types of Business Entities
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 146KB) for more details on each type of business structure.
Use the to get recommendations on which business structure is most suitable for you.
Factors to consider when choosing a business structure
The type of business structure you choose depends on your business needs. 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 different business entities?
- How easy is it to close the business entity?