One of the first decisions that you will have to make as a business owner is how the company should be structured. This decision will have long-term implications.You will want to take into account the following:

• Your vision regarding the size and type of business.
• The level of control you wish to have.
• The level of "structure" you are willing to deal with.
• The business's vulnerability to lawsuits.
• Tax implications of the different ownership structures.
• Expected profit (or loss) of the business.
• Whether or not you need to re-invest earnings into the business.
• Your need for access to cash out of the business for yourself

While selecting the best form of business ownership, the entrepreneur should keep the following considerations in his/ her mind:

Nature of Business; The selection of appropriate business ownership depends upon, to a great extent, the nature of the proposed business itself.

1. When forming a business it is important to consider many aspects such as costs, and the type of business you wish to offer. When starting a business of your own, what type of structure would you choose? Explain why it would benefit you best?

2. Partnerships are two or more people sharing ownership of a single business. What are the 4 advantages of partnerships? What are the 4 disadvantages of partnerships?

3. When forming official business partnerships it is beneficial to seek assistance from an attorney to solidify agreements. Business partnerships among family and friends are often done verbally without legal documents. One reason is the expense of hiring an attorney and the amount of time and details LLC, S corporations and other legal partnerships require. The article suggests that partnerships based on "handshakes" are not wise. Do you agree? What steps would you take to establish your partnership in detailing all that is required while maintaining a positive agreeable working relationship with partnership and smooth process? Explain?

4. Which type of business structure do you find more attractive? Why?

5. Many sole proprietorships would benefit from having a partner for many reasons or possibly not. Yet, they still choose not to seek a partner. Give an example of a business partnership you have experienced or observed that has not worked well and explain the reasons why you determined it to be successful?