Choosing the correct legal structure affects liability, taxation, and growth potential. Common structures include sole proprietorships, partnerships, and limited companies.
Each structure carries trade-offs. Sole proprietorships are simple but expose owners to personal liability. Limited companies offer protection but require compliance and reporting.
Regulatory compliance includes business registration, licensing, and labor laws. Failure to comply results in penalties and operational disruption.
Legal literacy enables entrepreneurs to plan responsibly and avoid preventable risks.