Types Of Business Planning

Most common is what's known as a "C Corporation," which allows your business to deduct taxes much like an individual - the only problem with this is that your profits will be taxed twice, both at the corporate level and at the personal level.

Don't let this fact deter you, however - this is extremely common, and if you currently work for a company with multiple employees, that's likely the business structure they're using.

If you're starting your own business, you'll want to create a business plan to help you better outline your goals before committing to one of the business types below.

One of the first challenges new entrepreneurs face is deciding what type of business they should register.

This means that you as the business owner are accountable for all of the profits, liabilities and legal issues that your business may encounter - not typically an issue as long as you pay your bills and keep your business practices honest.

If you're starting an ecommerce business by yourself, a sole proprietorship is probably the best type of business for you.

Beyond that, you'll also need to register your business with the IRS for tax purposes.

Although this may seem like a complicated process, there are lots of benefits to a partnership, so if you're looking to have a co-owner, don't be afraid to go for it - many online companies are formed using partnerships.

Finally, check your local and state laws regarding running a business out of your home, as zoning laws can sometimes be an important factor in deciding which type of business you want to create.

Sole proprietorships are the most common type of online business due to their simplicity and how easy they are to create.