Hierarchy chart of business entity types
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There are 3 main business entity types: Sole Proprietor, LLC, and Corporation. Most new entrepreneurs default to sole proprietor because it’s easy. But here’s the problem: your personal assets are completely exposed. LLC is the sweet spot for most small businesses. You get legal protection, tax flexibility, and credibility without the complexity of a corporation. Made this mistake or want to avoid others? Comment MISTAKES for my free guide on the 9 business setup errors that cost you money. | TH
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