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The legal structure of your business determines a lot about how your company operates and is taxed. Here’s how to choose the entity that’s best for you.

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A small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase.

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Creating an Organizational Structure for your Small Business. Many small businesses lack a well-defined organizational structure.. After all, when you employ a few people, and everyone seems to wear multiple "hats", it feels authoritarian to have a hierarchy in place.

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A hierarchical organizational chart is a diagram that shows an organization’s reporting structure from the top-down, starting with the business owner or department manager at the top of the chart and employees who report to them appearing below their name.

When business takes a turn for the worse-the debts become unmanageable, say, or it’s hit with a punishing legal judgment-the outcome could be disastrous for your personal finances.Unless you’ve chosen a business structure to insulate you from such bad fortune.

The typical organizational structure for a small business often depends on the type of business being operated. Traditionally, the sole proprietorship is the most typical organizational structure for a small business. Other organizational structures, such as general partnership and limited liability company, may be appropriate for some small businesses.

A sole proprietorship has little structure – any corporation has much more. The LLC stands midway between sole proprietorships/partnerships and corporations. The level of professional support you have.

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Business Structures: Which One is Best for Your Business. – Learn more about business structures such as LLCs, partnerships, sole proprietorships, or corporations and other legal topics for small businesses and individuals at FindLaw.com. Business Structures: Which One is Best for Your Business – FindLaw