When you are setting up a business, the structure you choose for your business will impact your tax bill, ability to attract investors, liability, and more. This hybrid Coach and quiz allow you to learn about and compare the four most popular business structures: sole proprietorship, partnership, LLC, and corporation. You’ll select the one that best suits your business in six key areas. In the end, the quiz will reveal the best overall option for you and your business. To begin, click “Get Started.”
Choosing a Business Structure
Each business structure has its own advantages and disadvantages. The key to choosing between them is to find which will best suit your needs and preferences in the most areas. This quiz highlights the six main aspects where these structures differ. An overview of each structure is included below.
A sole proprietorship is a business owned by a single person where there’s no distinction between the business and the owner.
A partnership is a business owned by multiple people with no distinction between the business and the owners. It isn’t uncommon to have a partnership of only 2 to 3 people, but it can go up to 20 in most cases.
An LLC (Limited Liability Company) is a business owned by “members,” of which there can be one or several. There’s a clear line between business and personal assets for the member(s) and more flexibility than other business types.
A corporation is a company that is its own entity. This means that it can be taxed, held legally liable for debt, and even make a profit as a separate entity from its owners (shareholders).
means cutting back or cutting some of them out altogether. You can go back to the answers you and your partner gave when you had the conversation about what kinds of expenses would be the easiest, and the most difficult to forego.
Factors to Consider
The most important distinctions between these business structures are found in six categories:
Ownership & Day to Day Operations
This quiz is designed to make the differences between each clear by going through these aspects and outlining the pros and cons related to each structure. You’ll select which structure(s) you prefer for each aspect and the quiz will tally everything up for you at the end, revealing which structure will be the overall best option for you and your business.
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