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Choosing a Legal Structure for Your Business

Choosing a Legal Structure for Your Business

Choosing a Legal Structure for Your Business


Most business owners have more on their minds than legal structures. They focus on locations, supplies, target audiences, and more. Although not as exciting, the legal structure is a critical factor that requires thoughtful consideration. There is no one-size-fits-all structure, however. The structure that best suits one business’s needs can be the wrong fit for another business.

For this Discussion, you will weigh the pros and cons of each type of business structure and identify which structure you would choose if you were to start a business, if you have not done so already. Keep in mind that you do not have to have plans to become an entrepreneur in order to participate in this Discussion. The purpose is to place yourself in the position of someone who needs to make this decision.

To prepare for this Discussion:

  • Review the Learning Resources and focus on the differences and similarities between legal business structures. Consider the positives and negatives for each structure, as well as how certain structures work better for certain situations.
  • Your Discussion will be based on a business idea that comes from you. If you have a business idea that you want to pursue (or if you have already started a business), you can use that idea. If you do not have one in mind, use a hypothetical example from an industry with which you are familiar.
  • Review the Academic Writing Expectations for 2000/3000-Level Courses.

By Day 3

Post a 150- to 225-word (2- to 3-paragraph) explanation of which type of legal structure you would choose if you were going to start a business. In your explanation:

  • Briefly describe your business idea (whether real or hypothetical).
  • Describe the legal structure you would select for your business, including the aspects that make it unique compared to the other structures, and provide a rationale for why it fits best with your business idea.
  • Be sure to share any questions you would need to answer before making a final decision about the legal structure for your business.
  • Include reference(s) to a minimum of one scholarly source to support your response.

Refer to the Week 6 Discussion Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.

Read some of your colleagues’ postings.

By Day 5

Respond with at least 75 words (1 paragraph) each to two or more of your colleagues’ postings by suggesting ways they could start their business idea using a different type of legal structure than the one they identified. In your response, identify any adjustments they would need to make to the business if a different structure were selected.

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