What are the different types of Business Structures?
Sole proprietor – an individual who owns an unincorporated business by themself. Partnership – a relationship where two or more persons join together to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. Corporation – a relationship where prospective shareholders exchange money, property or both, for the corporation’s capital stock. Profits are taxed to the corporation when earned and then taxed to the sharehoders when distributed as dividends. S corporation – a corporation, meeting certain criteria, that elects to be treated as and S corportation. Generally an S corporation is exempt from income tax; the shareholders report the S corporation’s income, deductions, loss and credits on their individual tax returns. LLC – an entity – statutorily authorized in certain states – that is characterized by limited liability for debts similar to that of a corporation, managed by members or manager
