Form of Practice
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What is Form of Practice?
Before starting your own practice, it is crucial to choose the right business structure to suit your
new practice. You must decide what form of business entity to establish by considering how you
are taxed, legal liability, costs of the formation and operational costs. The choice of practice form
also determines which income tax return form you have to file.
Setting your final goals to your business organisation type is a crucial step, so understanding the
characteristics of each form is important. There are five general types of business form -
Sole Practitioner, Traditional Partnership, Limited Liability Company, Limited Liability
Partnership, and Employee Ownership.