What are all these Business Types?
Deciding to start a small business is a big decision, and there are a lot of factors for you to consider. One of the most important decisions you’ll need to make is what kind of business organization to start. Here is a summary of some of the more common types.
There are four common types of small business ownership:
- sole proprietorship;
- partnership;
- limited liability company (LLC);
- and corporation.
- Each type has its own advantages and disadvantages, so it’s important to choose the one that’s right for your business.
Sole proprietorships are the simplest and most common type of small business ownership. They’re owned by one person, and there’s no legal distinction between the owner and the business. This means that the owner is personally liable for all debts and liabilities of the business.
Partnerships are similar to sole proprietorships, but they’re owned by two or more people. Like sole proprietorships, partnerships have unlimited liability, meaning that the owners are personally liable for all debts and liabilities of the business.
LLCs are a type of business ownership that combines features of both sole proprietorships and partnerships. LLCs have limited liability, meaning that the owners are not personally liable for debts and liabilities of the business. corporations are owned by shareholders, and they offer limited liability protection to their owners.
If you don’t know what to do or simply have questions, you should consult with your Certified Public Accountant (CPA), Attorney and the Sam Houston State University Small Business Development Center (SBDC) at Sam Houston State University . These professionals can help you make the best decision for your business.