Congratulations! You’re starting a business in Alaska. Or maybe you’re an existing business and are growing. Or maybe you’re one of those businesses that started up without giving any thought to your business structure.
Whatever the case, your structure either protects you or exposes you to liability. It can affect how much you pay in taxes. It affects how you work with other business owners. Sometimes it can make or break you.
How should you structure your business? Let’s look at the number of businesses formed in Alaska in 2010 to see what others are doing. Here they are:
- 9,000 sole proprietorship or partnerships
- 624 corporations
- 2799 limited liability companies
- 10 limited liability partnerships
- 115 limited partnerships
- 25 professional corporations
It looks like most people are forming sole proprietorships, partnerships, corporations, or limited liability companies. The other types of entities are typically used for specialized purposes. Let’s take a closer look at the popular entity types and see how you can use them in your business