Business structure is the legal framework in which a business operates. It defines how the company interacts with its owners, employees and customers. A fundamental business structure consists of three main elements: legal status, ownership, and operations. The legal status defines the type of entity that a business has formed and how it will be taxed. Ownership defines who owns what portions of the company and whether or not any external sources are involved. Lastly, operations detail how the business will be run, from governance to management and day-to-day activities. Understanding basic business structure can help businesses succeed by keeping them organized and compliant, so they can focus on achieving their goals.