Having a strong foundation is crucial for just about everything you do.

In the world of business, this includes choosing the legal structure that makes the most sense for your circumstances. The type of entity you choose can have a huge impact on your ability to raise capital or protect your personal assets from liability. Whether you’re a sole proprietor or working with partners, you need to select the most appropriate corporate framework and understand your obligations under it.

To help you make this extremely important decision, take a look at the accompanying checklist. It details some of the most common types of business entities and their key qualities. When it comes to structuring a business, it’s important to get started on the right foot before you take your first steps.

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Types of Business Structures for New Businesses

Brett Shapiro is a co-owner of GovDocFiling, which provides information and services to help start a business — from government form filing to financial and legal business services. Shapiro, who started multiple companies prior to GovDocFiling, focuses on developing services and partnerships that support and encourage entrepreneurship across all industries.