Choosing the type of legal entity for your business is an important decision. Each type differs in:
- Ease of formation
- Ease of transfer of ownership
- Personal liability concerns
- Employment issues
- Taxes, accounting and administration
The traditional forms of business organization are sole proprietorship, partnership, and corporation. Recently, limited partnerships and a new entity called a Limited Liability Company (LLC) have also become popular.
The following sections describe the different types of primary organization, and the advantages and disadvantages of each. Although we discuss some tax issues, make sure you consult your tax accountant or lawyer for details.
Click on any entity name listed below to learn more about that particular business structure.