Choose the structure or type of your business
Selecting the right legal structure for your business is one of the most important steps to ensure its success, efficient operation, and sustainable growth. This decision depends on several factors, such as:
The size and nature of the business
The liability of partners or owners
Control and decision-making processes
Taxation
Complexity and setup costs
It is crucial to take the time to carefully evaluate your business needs and, if necessary, seek expert advice to make the best choice.
Below are the main types of business structures, along with their key characteristics and advantages:
Sole proprietorship
The simplest form of business, owned and operated by one individual. The owner has full control but also bears unlimited personal liability, as there is no legal seperation between personal and business assets.
Limited liability company (LLC)
A flexible, hybrid structure that combines features of corporations and partnerships. Owners, referred to as members, have limited liability, meaning their personal assets are protected from the company’s debts.
Public limited company (PLC)/ Société Anonyme (SA)
A separate legal entity distinct from its owners, capable of issuing shares to raise capital. Shareholders have limited liability, making it a suitable option for larger businesses seeking to attract investors.
Private company with limited liability (PCLL)
A P.C.L.L. is a commercial entity with legal personality, even if its purpose is not strictly commercial. It can be established by a single person, functioning as a sole entity. Its charter and amendments are private documents, providing flexibility in management and operations.
General partnership (GP)
A business entity where all partners share unlimited and joint liability for the company’s debts. Trust among partners is critical, as each is fully responsible for the partnership’s obligations.
Limited partnership (LP)
Similar to a General Partnership but with a key distinction: at least one partner has limited liability (limited partner), while another assumes unlimited liability (general partner).
Cooperative
An organization owned and operated by its members, who share the profits, responsibilities, and obligations. Cooperatives can be:
General: All members are fully liable
Limited liability: Some members have limited liability
Non-Profit Organization
A legal entity established for charitable, educational, or social purposes. Profits are reinvested into the organization’s mission instead of being distributed to owners or shareholders.
Useful Business Templates
A template used to identify the difference between the current and the desired state, identifying improvement actions.
A template for evaluating employees' performance, recording skills, achievements, and areas for improvement.
A structured plan outlining how your business will promote, sell, and deliver its products or services to meet revenue goals.
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