At this point in the growth of a small business, the business concept and operational details will have been determined. The steps outlined in this section are designed to help you to make the best choice for the legal entity or structure, through which your business will function, deal with taxes, and strengthen its credentials. Registering your business as a legal entity separates your business affairs from your personal affairs. This is essential in terms of building a strong business credit history for your company.

From the day of your company’s official inception, it is positioned legally to operate under a set of requirements and tax laws independent of you as the owner. Its publicly authorized status grants it access to valuable business credit resources outside of those available to you personally. The various types of legal structures for incorporating and procedures for taxation matters and IRS requirements are covered here. The inherent taxation strategies that come with each type of business structure have a direct correlation with the methods a small business will use to establish a strong business credit rating. Developing solid credentials within the business community is extremely valuable to a company in its progression.

The following articles should help clear your understanding corporate structure and it's role in your business and credit development process: