Learn more about the different ways to incorporate a business.
A limited liability company is valuable for the protections and simplicity it offers its owners. It is a flexible form of ownership that can also be useful for tax planning.
There are basically two types of partnerships--general partnerships and limited partnerships. General partnerships are a risky way to operate the business because of personal liability concerns. A limited partner can avoid the personal liability, but loses the ability to participate in day-to-day decision-making
A sole proprietorship is the easiest and least expensive way to begin operating a business is as a sole proprietorship. However, this organization form does not protect your personal assets from the claim of business creditors and offers limited tax planning options.
Whether you've purchased an existing business or started one from scratch, you must decide which form of organization (sometimes referred to as 'business entity') is best for your company.