Different Entity Choices
There are many entities you can choose for your business.
Sole Proprietorship is the most common form. There is little distinction between the owner and the business. The advantages are that it is quick, easy, inexpensive, and no tax returns for the business entity. The disadvantage is you have no protection from liability.
Corporations require certain characteristics including the need for Articles of Incorporation, Shareholders, and policies. The biggest negative is the double taxation that occurs. Both C and S corporations have several legal qualities including limited liability protection, perpetual existence, and free transferability. The S Corporation has further limitations in that there can not be more than 100 shareholders, only one class of stock, and no resident aliens as shareholders.
Limited Liability Company is one of the most popular types of entities due to its pass through taxation, liability protection, and management flexibility.
General Partnerships are entities made up of two or more persons or entities that carry on a trade or business. Advantages include it is easy and it is a pass through tax entity. The disadvantage is there is still unlimited liability.