What Is A Business Structure?

A businesses structure can be complex to build but once in place shouldn't need much changing. Here are the types of business you can have:

• General partnership ~ This is a partnership made up of general partners.


• Sole proprietorship ~ This means the business is owned and also operated by one person. This person is then liable for any obligations or debts.


• Limited partnership ~ In a limited partnership the obligations of the business are shared between the limited partners and also the general partners.


• Corporation ~ This is an entity which can incur debts, own property, sue and be sued. They are a group of people which can act as one entity.


• Limited Liability Company (LLC) ~ An LLC is a mix of both a corporation and a partnership. It combines the advantage of limited liability with the advantage of pass through taxation which is used on a partnership.

You will also need to consider business insurance, book keeping, liabilities, pay roll.

Other types of business structure include the way employees and staff are managed. This can be flat level (lots of teams/people reporting to one boss) or multi-layered (lots of teams reporting to a few less bosses, that report to a few less etc to one big boss!). Or a combination of the two.