As a contractor, one of the most basic decisions you must make is what organizational form to use for your business. There is no one right form for a small construction company — it depends on your situation. Every form has its drawbacks and advantages. Choosing the right one requires weighing your concerns and goals against the advantages and limitations of each form. A business may take one of several basic forms, from the simple sole proprietorship to the full-fledged C corporation. These forms provide the owners with various degrees of protection from legal and financial liabilities. In general, as protection from liability increases, the owner's direct control of running the business decreases. Noncorporate Forms An unincorporated business can be owned by a single person, or
