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Commonly Asked Questions about Legal Corporate Forms

The 3 Most Common Business Structures Sole Proprietorship. In a sole proprietorship, youre the sole owner of the business. Partnership. A partnership is a non-incorporated business created between two or more people. Corporation. A corporation is a legal entity separate from its shareholders.
The most common forms are sole proprietorship, partnership, and corporation.
A corporation, sometimes called a C corp, is a legal entity thats separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures.
Three types of corporate business organization provide limited liability. The C corporation is the conventional or basic form of corporate organization. Small businesses may achieve liability protection through S corporations or limited liability companies (LLCs).
The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A limited liability company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.