Watch a video summary on Different Types of Business Entities
Types of business structures
There are 4 main types of business structures to choose from. They are:
- Sole Proprietorship (one owner) or Partnership (two or more owners)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
- Company
Refer to this table(PDF 146KB) for more details on each type of business structure.
Use the e-Adviser for Business Structure on GoBusiness to get recommendations on which business structure is most suitable for you.
Factors to consider when choosing a business structure
The type of business structure you choose depends on your business needs. Consider the following factors to determine the best structure for you:
- How much capital are you prepared to invest?
- How many owners will there be in the business?
- What liabilities and responsibilities are you prepared to assume?
- What risks are you prepared to take?
- What are the advantages and disadvantages of different business entities?
- How easy is it to close the business entity?
