Choosing a legal form for your business

Most countries offer three broad options. Sole trader (self-employed). Fastest and cheapest to open, simplest bookkeeping, but you are personally liable for business debts. Limited liability company. A separate legal person. Your risk is limited to the capital you put in. Costs more to open and run (accounting, annual filings) and usually looks more credible to larger clients. Partnership. Two or more owners who share profit and, in most forms, liability. Put the partnership agreement in writing before the first invoice. Rule of thumb: start as a sole trader if you sell your own time with low risk, choose a company if you hire people, sign larger contracts or want to bring in partners or investors later. Sample content: have a licensed professional in your country review it before relying on it.