Choosing a structure for your business will affect how you officially "form" the entity, how you pay taxes and how you run the day-to-day operation.

There are four forms to chose from:

• Sole Proprietorship
  a business owned by one person
• Partnership
  a business owned by two or more persons
• Limited Liability Company
  a distinct legal entity with qualities of partnership and a corporation
• Corporation
  an artificial entity that receives its legal existence from a state charter

TIP: To see a quick summary of the advantages and disadvantages of each click here.