Legal structure

The legal form of the business — sole trader, partnership, limited company, corporation.

Example

A private limited company with shares.

Important

Only a share-issuing entity can take equity investment. Sole traders and most partnerships cannot, so the structure decides your funding options.

Related terms

• Incorporation — Legally creating the company as an entity separate from its founders.
• Equity — Ownership in the company, usually held as shares.
• Governance — The rules and structures by which decisions get made and the company is held accountable.

Lessons that explain it

• Legal structures and incorporation — Educational, not advice. What the main structures are, why only some can take investment, and when to talk to a professional. (12 min)

All 176 terms in the Founder glossary