Review of "which Legal Form Is Best for Your Business?" Article from Inc. Magazine

Which Legal Form is Best for your Business?

Article

        This article talks about the decisions someone has to make when starting a business.  It says that you have to decide on a legal structure for the business.  It could be a sole proprietorship, a partnership, a limited liability company, or a corporation.  It mentions that there is no right or wrong choice that fits everyone.  The best way to choose is to understand how each legal structure works and pic the best that fits our needs.  According to the article, the best choice for small businesses is either a sole proprietorship or a partnership, if more than one owner is involved.  It also says that forming a corporation is more complicated and costly, but it is worth for some small businesses.  The main feature of limited liability companies and corporations that attracts small businesses is the limit they provide on their owners’ personal liability for business debts and court judgments against the business.  Also, when setting up a LLC or a corporation lets you enjoy more favorable taxes.  It also mentions different types of entities such as sole proprietorship, general partnership, limited partnership, regular corporation, s corporation, professional corporation, nonprofit corporation, limited liability company, professional limited liability company, and limited liability partnership.  

        In my opinion I really find the article to be very interesting because it provides a basic understanding of the different types of legal structures there are when starting a business.  It also provides a basic overview of ways to organize the business.  It gives a simple understanding of the different types of entities, its main advantages, and main drawbacks.  Even that the article is very old, I really think is very useful for people that didn’t have the opportunity go to college and educate themselves on how to start a business.  Also, some business owners fail to be profitable because they don’t have the basic knowledge or some guidance.