Choosing a business structure

Topic preview

1. 01

   Legal personality of business forms

   For each of the four business mediums, say whether it has separate legal personality and why that matters for owning assets and contracting.

2. 02

   Personal liability exposure

   If the business fails with unpaid debts, who is personally exposed in each medium and who is protected by limited liability?

3. 03

   Tax treatment by structure

   Give the basic tax treatment for profits in each medium and flag any point where tax does not simply follow legal personality.

4. 04

   Management control differences

   Compare how much management flexibility the owners have in each medium and which structures usually allow the most informal decision-making.

5. 05

   Filing burden and privacy

   Which structure creates the heaviest public filing burden, and what does that mean for privacy compared with the other mediums?

6. 06

   Choosing the right structure

   A cautious founder wants limited liability, a professional image and manageable admin. Which medium would you steer them toward, and what trade-off would you warn about?

7. 1 more building block

   The full topic unlocks with FLK1 Playbook, including the remaining prompts and answer-key marking.