Choosing a Business Structure: A Basic Guide for New Business Owners

One of the first major decisions for a new business is choosing the right structure. The choice affects documentation, compliance needs, cost, and process requirements.

Common Options (Basic Overview)

• Proprietorship – often chosen by small single-owner businesses
• Partnership – where multiple partners operate together
• LLP – structured operations with limited liability features in suitable cases
• Company – often chosen for formal structure and scalability

What to Consider Before Deciding

• Nature of business
• Number of founders/owners
• Compliance readiness
• Documentation capacity
• Long-term growth plan
• Banking/investor/vendor requirements (case-dependent)

Why Guidance Helps

Choosing only based on “cheap/fast” can create future problems. A better approach is to understand documentation and ongoing responsibilities before moving ahead.

How Legarity Helps

We provide basic structure understanding guidance, documentation checklist support, registration planning guidance, and next-step consultation support.