Business Structures

Front

A business owned and operated by one individual, with no legal distinction between the owner and the business.

Back

Sole Proprietorship

Front

A business structure where two or more individuals share ownership, management, and profits.

Back

Partnership

Front

A separate legal entity owned by shareholders, which can enter contracts, own assets, and incur liabilities.

Back

Corporation

Front

A hybrid business structure that provides limited liability protection to its owners while allowing flexibility in taxation.

Back

Limited Liability Company (LLC)

Front

Easiest and least expensive business structure to form, but the owner is personally responsible for all debts.

Back

Sole Proprietorship

Front

Business is managed by partners, with profits and losses shared according to the partnership agreement.

Back

Partnership

Front

Has complex administrative requirements, including board meetings, shareholder reports, and regulatory compliance.

Back

Corporation

Front

Can have one or more owners (members) and is governed by an operating agreement.

Back

Limited Liability Company (LLC)

Front

Owners are personally liable for business debts and obligations.

Back

Sole Proprietorship

Front

Partners share personal liability for business debts unless a limited partnership structure is used.

Back

Partnership