One of the important aspects to consider is the suitability and complexity of a particular business organisation. The following questions should be asked:
How many people are involved in starting up the business? Will the ownership of the business belong to one person, or will it be shared?
What costs and formalities are involved in setting up a particular business organisation?
Who is going to manage and control the business? What decision-making processes are suitable and efficient? To what extent will it be useful to share the responsibilities of running the business?
To what extent will the chosen business organisation be regulated? What reporting and disclosure requirements will have to be observed?
Is the business likely to grow significantly, and outgrow its immediate requirements? Will it be easy to involve new people in the business as it grows? Will it be easy to sell the business as a going concern?
How long is the business expected to endure? How difficult will it be to wind up the business?