There are three principal kinds of business structures: the Sole Proprietorship, the Partnership, and the Corporation. A brief description of each type is provided below:Sole Proprietorship A sole proprietorship is probably the simplest business structure to organize. A sole proprietorship business is owned by one individual (not a married couple) who has complete control of the business. Revenues are considered personal income and are taxed at the owner’s personal tax rate. Partnership A partnership involves two or more people conducting a business together. This business structure is also fairly simple to organize, but may be more costly than a sole proprietorship because it requires a separate tax return for each partner. Limited Liability Partnership (LLP) In this type of partnership, the liability of each partner can be limited to exclude obligations resulting from professional mistakes made by other partners or malpractice actions against other partners.
