Capterra Glossary
Business Structure
Business structure refers to a company's organization in relation to its legal status. A corporationʻs business structure often states who the owner of the company is, how its profits are distributed, and its managerial hierarchy. There are three main types of business structures: a sole proprietorship, a partnership, and a corporation. The structure of a business affects the amount of taxes an individual or organization must pay to the government, the paperwork they must file during tax season, and the personal liability business owners are accountable for.
What Small and Midsize Businesses Need to Know About Business Structure
The type of business structure that a small business chooses will have a long-lasting effect on their daily operations, tax liabilities, and future of their organization. To avoid financial penalties and legal consequences, small businesses should consult with a lawyer and tax consultant to ensure that their business structure is properly set up.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)