If you have an entrepreneurial spirit, chances are that you have had that "Aha!" moment when the perfect venture pops into your mind that you just have to pursue. Big ideas are the femme fatales of the business world - sexy, intriguing and distracting. It is easy to get carried away with the fantasy and disregard the dull details of a business but a properly formed business is key to any big idea's success.

The form of a business determines everything from tax implications to management. Some business forms limit liability, while others leave the business owner wide open to suit. The basic business structures are as follows:

1) Sole Proprietorship - One person owns all of the assets in the business. Owner and business are one in the same.

2) Partnership - Similar to a sole proprietorship but with at least two owners.

3) Corporation - A legal entity distinct from its owners that requires more formality than other types of business entities.

4) Limited Liability Company - An entity designed to offer its members the limited liability of a corporation and the flow-through tax advantages of a partnership.

The Biz Breakdown will explore each type of business entity in-depth. For a more personalized analysis of the right business entity for you and your big idea, call The Rad Firm to set up a consultation (310) 461-3766.