Forming Your Business Organization - Simple Overview

A business is established with the objective of making a profit. The business may be raising something to sell: sugar beets, livestock, wheat, Christmas trees. The business may be the performance of a service: altering clothes, housekeeping or painting. Or the business may be manufacturing or making something: fishing waders, coats or wedding gowns. 

Regardless of the product or service provided, every business owner needs to decide what form of business organization is most appropriate.

1) the sole proprietorship;

2) the partnership, which may be a general partnership, a limited liability partnership or a limited partnership; 

3) the corporation, which for tax purposes may be a C or an S corporation; or 

4) the limited liability company.

5) the offshore corporation. This is a specialized asset protection vehicle for businesses with a significant amount of assets you would want kept safe from unjust litigation or disputes.

The purpose of this guide is to explain some of the features of each business type in a short and simple fashion and is intended to be a first step in deciding which is the best choice for the reader.