What Type of Business Structure is Right for a SaaS, AI or IoT Company?

If you’re thinking about starting a tech startup you already know — there are a lot of things to consider. The legal structure for business formation is one of those critical factors, and it has a significant impact on whether you will succeed or not.
Most SaaS, AI, and IoT enterprises are corporations. But what if a tech startup uses the LLC structure? Why should a founder entertain this idea? That’s not to deny the numerous advantages that a corporation offers, though.
This article examines all the major business structures and highlights the significant benefits of each, and particularly LLCs.
LLCs vs Sole Proprietorships and General Partnerships
SaaS, AI, and IoT companies are capital-intensive startups; it is almost impossible to get your startup off the ground if you run it as a sole proprietorship or a general partnership.
And this is not only due to lack of liability protection, though it is a significant factor attracting investors. As a sole proprietorship, your investment…

Written By: Joseph Chukwube

Original Article: https://readwrite.com/2021/10/02/what-type-of-business-structure-is-right-for-a-saas-ai-or-iot-company/

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