Starting a business may seem like a daunting task, when in reality there is a systematic approach an entrepreneur can take to start a business. There are many factors to consider when creating a business structure; these factors include startup costs, operating costs, liability and taxation. An entrepreneur will also want to evaluate whether or not they want to expand in the future, which will also play a factor in what type of business they should start. This paper will look at the advantages and disadvantages of sole proprietorships, partnerships, limited liability companies and corporations. Also, see what the courts can do if a company operates outside the scope of accepted business practices. There is no one-size-fits-all business structure, which is why a potential entrepreneur must examine and evaluate all of the different options before choosing a type of business to start. The first step in starting a business is choosing a business structure. Sole proprietorships are the oldest and most common form of business, accounting for approximately 72% of businesses in the United States. (Ref. 3, page 76) It is a simple form of business to start; all you need is a product or service to offer, any applicable licenses or permits, and a business name. Although sole proprietorships are the most common form of business, they only account for about 5% of total profit in the United States. The advantages of a sole proprietorship are that they are easy to start and cheap to run. There are no filing fees with a state or national government and the accounting requirements are very relaxed. The disadvantages of a sole proprietorship are constraints on generating operating revenue, unlimited liability and taxation... paper ......or their business.Works Cited1. Larson, Aaron, “The Sole-Proprietorship,” expert-law.com [online], August 2004, http://www.expertlaw.com/library/business/sole_proprietorship.html, [retrieved February 20, 2010]2. Unknown, “Corporations vs. LLC's,” findlaw.com [online], http://smallbusiness.findlaw.com/business-structures/llc/corporations-compare-llc.html, [retrieved March 5, 2010]3. Brue, Stanley L., Flynn, Sean M., McConnell, Campbell R., “Macroeconomics: Principles, Problems and Policies”, McGraw-Hill International Edition, 18th edition, New York, New York, 2009, p. 73-88.4. Jentz, Gaylord A., Miller, Roger L., “Business Law Today,” South-Western Cengage Learning, 8th edition, Masan, Ohio, 2008, pp.705-824.5. U.S. Government, “2009 Individual and Corporate Tax Rate Schedules,” irs.gov [online], http://www.irs.gov/, [retrieved March 3 2010]