Choosing your business structure is just as important - if not more important - than marketing. You should consult with your accountant or your attorney in forming your business. The process in setting up your company is as follows; these are just the key points that need to be done, but not necessarily in the exact order listed.

First, you need to come up with a company name and ascertain if the URL is available for that website. If the URL is available for that name, the next step is to register that name with the Secretary of State in the state that you reside in. At this point, there are two options: One is to consult with your accountant or CPA to decide if you should be a sole proprietor, partnership, limited liability corporation or a Corporation. At the very least, reserve the name with your Secretary of State for a minimal fee while you decide what business entity you should be.

Here are the four types of business structures and a brief explanation of each:

1. Sole Proprietor - A Sole Proprietorship is one individual or married couple in business alone. Sole proprietorships are the most common form of business structure. This type of business is simple to form and operate, and may enjoy greater flexibility of management, less legal regulation, and fewer taxes. However, the business owner is personally liable for all debts incurred by the business.

2. Partnership - A General Partnership is composed of two or more persons (usually not a married couple) who agree to contribute money, labor, and/or skills to a business. Each partner shares the profits, losses and management of the business, and each partner is personally and equally liable for debts of the partnership. Formal terms of the partnership are usually contained in a written partnership agreement.

3. Limited Liability Corporation - A Limited Liability Company (LLC) is composed of one or more individuals or entities through a special written agreement. The agreement includes: provisions for management, ability to assign interests and distribution of profits and losses. Limited liability companies are permitted to engage in any lawful, for-profit business or activity other than banking or insurance. LLC