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

  • Employment issues

  • Taxation, Accounting and Administration


The traditional forms of business organizations are sole proprietorship, limited liability company, limited partnership, and corporation. 

The following sections describe the different types of business organizations and the advantages and disadvantages of each. Although we discuss some tax issues, make sure you consult with your tax accountant for details.

Click on any entity name listed below to learn more about that particular business organization.