What legal structure should my business have?

Sole proprietorship is simplest but riskiest

If you start without formal registration, you're operating as a sole proprietor. This is fast and cheap, but your personal assets are exposed if the business is sued. It works fine for low-risk services but is risky if you handle customer money or have significant liability.

Limited liability structures protect personal assets

Incorporating or forming an LLC creates a legal barrier between you and the business. If the business gets sued, personal assets (your home, savings) are protected. This costs more to set up and maintain but matters if liability is a real risk.

Taxes vary by structure

Different structures have different tax treatment. Sole proprietorships are simple; corporations involve more compliance but offer different deductions. Consult a local accountant or tax professional for your specific situation. Don't choose based on what someone else did—your circumstances differ.