The right legal structure for your business

There are many variables to choosing the right business entity, but a good place to start is to prioritize liability issues over tax issues

Q: I’m trying to start an independent record label, and I’m also a piano accompanist. I’d like to combine both those services under one company, but I’m still deciding whether to classify my business as a sole proprietorship or a corporation. Would a corporation provide me with more tax advantages if I earn under a certain amount of income? If I’m more successful in subsequent years, would it be hard to change the legal structure? —E.F., Miami

A: This is a common sticking point for entrepreneurs getting started and there are many factors that go into making the decision. The legal technicalities are complex and the pros and cons can be confusing. You’re best off if you can meet with an attorney who specializes in small business …more from BusinessWeek. Flickr photo credit: College Park Speed and the…’s photostream