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The legal structure you choose should suit the type of services or products you will provide. Consider your options to find the best fit for your business.
Every business owner must choose a legal structure for their business in order to operate, register and pay taxes. There are several different types of legal structures for you to choose from, each with implications for your taxes, personal liability, partnerships and registration requirements. The below is not meant to be an exhaustive list of the different types of legal structures, and is also not meant to act as legal or tax advice, but can serve a starting point for your own research.
Depending on their needs, many business owners also consult with an attorney. Some types of legal structures are easier to set up than others. For instance, forming a sole proprietorship does not require you to file any formation documents (although a tax registration is still required), while for entities such as corporations and Limited Liability Companies, you will need to formally incorporate your company with the State. You may find more information at the US Small Business Administration website or at the New Jersey Division of Revenue and Enterprise Services website.
Click the links for more information about the advantages and drawbacks of each business structure.
Visit the IRS website or contact the Business Action Center for more information on business structures.