What are the Different Types of Business Entities?
The choice of business entity affects everything from taxation to personal liability. The main types of business entities include:
Sole Proprietorship: The simplest form of business, owned and operated by one individual. Partnership: A business owned by two or more people who share profits, losses, and liabilities. Limited Liability Company (LLC): Combines the benefits of both the corporation and partnership structures. Corporation: A more complex structure that provides limited liability to its owners, with the ability to raise capital through stock.