One of the early decisions an entrepreneur may face is choosing the right legal structure. The best option depends on your goals, ownership arrangement, expected growth and the nature of the business.

Business Name

A Business Name can be suitable for an entrepreneur or small venture that wants a formal registered business identity with a relatively straightforward structure. It can be a practical starting point for many small businesses.

Limited Liability Company

A company structure can be more appropriate where there are multiple owners, a larger growth plan or a need for a separate corporate structure. It may also be relevant when dealing with certain corporate clients or opportunities.

Questions to ask before choosing

  • Will there be one owner or multiple owners?
  • How quickly do you expect the business to grow?
  • Will you seek investors or partners?
  • What type of clients and contracts do you expect?
  • What ongoing compliance responsibilities will apply?

Make the decision deliberately

There is no universal answer. Consider the business model and future plans, then confirm the applicable requirements before filing.