The legal structure of your business affects how much you pay in taxes and your level of legal responsibility for debts incurred by your business. Here are a few of the most common types of business structures:
A sole proprietorship is the simplest and most common structure to start a business. Sole proprietorships are owned and run by one individual, or a married couple, with no distinction between the business and the owner. The owner is entitled to all profits and is responsible for all of the business’s debts, losses and liabilities.
A partnership is a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.
A limited liability company (LLC) is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.
A corporation is more complex and generally suggested for larger, established companies with several employees.
All the links you need will be provided at the end of the Startup Guide, with your registration checklist.