The legal structure is one of the most important decisions in the start up process. The choice will depend on the best advantages that a structure provides based on the company needs, risks, and ability to grow. I think the LLC is the best hybrid structure that allows partners, shareholders, and/or owners to limit their personal liabilities while enjoying the tax and flexibility benefits of a partnership. The structure protects members from personal liability for debs generated by the business as long as it cannot be proven that they have acted in an illegal, unethical or irresponsible manner in carrying out the business activities. LLC, like corporations, does require various reporting requirements with state and federal governments, although it prevents double taxation which can be very important in the early stages of the company.