When it comes to the starting a business, you have a variety of business structures you must choose from. Between LLCs and sole proprietorships, classifying a company's entity determines how owners get paid and how they work.

 

The question you should ask yourself before starting a company is: what’s the best way to receive a salary as an entrepreneur?
 

In order to come to a decision on that, you must first decide what type of business entity is right for you.

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If you’re a small business owner, your business entity likely breaks into three types: LLC, partnership, or sole proprietorship.