The business structure you choose will dictate the legal and tax requirements you need to meet. Most small business owners choose from the following structures: Sole proprietorship. This is the simplest form of business structure, but its lack of limited liability offsets its simplicity. Partnership. While this form of business structure might appeal to you if you are embarking on your venture with a partner, your liability is unlimited like a sole proprietorship. Limited liability company (LLC). An LLC offers limited liability without the additional complexity of incorporation, making it one of the most popular small business structures. Corporation. Like an LLC, a corporation provides limited liability, and while it’s more complicated to both setup and maintain, it may be a good choice depending on your circumstances. It’s always a good idea to consult with an attorney to determine the appropriate business structure for your new business. Because each structure has different tax requirements, you may also want to consult a tax professional.