If you're thinking of starting a business or have already taken the leap, chances are you've heard from someone about how you have to set yourself up as a ______________. The ______ will differ depending on who you talk to, and what they believe to be the most important reason to have an entity for your business. So who's right? As with anything, the answer depends on the particular situation. However, there are some helpful things to know about each of the more common entities.

You should not start a business without consulting with professionals, and that includes a lawyer. I've seen too many folks try to DIY the start-up, and though they save money on the front end, they end up spending at least 10 times more on the back end to fix issues that could have been completely prevented. But professionals (especially lawyers) are expensive. So what to do? I've got an idea...