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Business Business structure can define the relationship of a person with his business including his legal liabilities and duties. The most common examples of Singapore company setup are the sole proprietorship, partnership, limited liability partnership, and private limited company. – Sole proprietorship In this business structure, there is only one owner who has the full control and authority of handling his business. However, this also means that he is the only one liable for the losses and debts of his business which is not considered as a separate entity. Because of the operational flexibility and relative simplicity, most business professionals believe the sole proprietorship is ideal to most micro and small business. – Partnership A partnership business may have two to 20 partners who do not enjoy limited liability, meaning, their personal assets such as houses and cars are not protected from the financial losses, claims, and debts related to their business. Just like in sole proprietorship, the partnership is not considered a separate legal entity from its partners, as a result, they can be personally liable for the lawsuits filed against their business. In terms of taxation, this business structure is taxed at a personal income rate of each partner. – Limited liability partnership This is another form of partnership. However, this business structure enjoys limited liability which is the main feature of a private limited company (or more commonly referred as corporation in the US) which protects the personal assets of partners from the financial losses and debts of their business. This business structure provides partners the flexibility of operating a partnership which makes this particularly appealing to a significant number of entrepreneurs in Singapore. – Private limited company A private limited company is a separate legal entity from its shareholders, meaning, they cannot be personally charged with lawsuits and claims related to their business. They also enjoy limited liability which provides protection on their personal assets from the debts and financial losses incurred by their company. In terms of taxation, this Singapore company setup provides notable advantages especially the Zero Tax and 50 percent tax break on its chargeable income of S$100,000 and S$200,000, respectively, during the first three years of its operation. In addition, a private limited company follows the single-tier tax system which means that shareholders get their dividends tax free since the taxes are only deducted at a corporate level. 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