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How to pick the right legal entity when forming a business

Choosing the right legal structure can have a profound impact on the future of your business. The type of legal entity you select can affect whether your business succeeds or falls apart in the first few years. Therefore, it is important to carefully select the one that appropriately fits the needs of your business.

There are four common types of legal entities, including sole proprietorships, partnerships, corporations and limited liability companies. Each type of legal entity contains more specific legal structures. While there is not one that is better for the others, there is likely one that is better for you.

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