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- Choosing a business structure is an important first step when starting a business. Each business structure has advantages and disadvantages. So which business structure should you choose? In this video, we will go over each of the business structures and give you an approach for how to decide on the business structure right for you. Keep in mind this is not business advice, but a means to help you explore the different business structures and help you decide which is right for you. If you are still unsure what business structure to choose, consult with an accountant. The first thing we need to talk about are informal versus formal business structures. Informal business structures are sole proprietorships and general partnerships. Informal business structures are simple to form and thus are a great way for testing a business in a low-risk environment. They allow you to see if a business will be successful before committing too much time and effort in creating a formal business struct