Business structures largely determine how yours will run and how much financial risk you'll be taking on, according to Forbes. The business structure you choose will also affect your taxes.

Among the most popular business structures is a limited liability corporation (LLC). LLCs offer a lot of flexibility, in that you can operate without the burden of shareholder meetings or a board of directors, says Forbes. They also financially protect you if you have to file for bankruptcy, adds the SBA. That way, personal assets—like your house or savings—can't be seized by creditors.

Another common structure is a limited liability partner (LLP), which resembles an LLC in many ways but is more common among licensed professionals, like lawyers or brokers.

Forbes advises working with a business accountant to determine the type of structure that's right for your product or service.