Types of Business Entities 2023

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When starting a business, there comes a time to make it official.  Deciding which entity is the best fit requires some research because of legal implications.  Each type has some tax pros and cons, as well as specific tax forms to be filed with the Internal Revenue Service.  Claiming an entity determines who is responsible for profits and losses, whether it be the business owner(s) or the business itself.  Some of the basic entities are Sole Proprietorship, General Partnership, LP (limited partnership), LLP (limited liability company), LLLP (limited liability limited partnership), LLC (limited liability company), PLLC (professional limited liability company), and Corporation / Incorporated.  For Sole Proprietors, the business owners are liable for debts and losses on the business.  An incorporated business is held legally liable for debts, instead of the owners or shareholders.  In the coming days we will discuss some basic business types and how they may fit your start-up.

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