Incfile Reviewed: The Top 10 Business Entity Types 

Incorporating a business is a delicate matter, as it involves choosing the business entity type that is best suited to your business. The type of business entity you choose will determine the amount of paperwork you have to file, the level of liability protection you have, and the amount of taxes you will pay. There are many business entity types to choose from, and the one you choose will depend on the size and scope of your business, as well as your personal preferences. The most common business entity types are sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and non-profit organizations. If you’re considering starting a business, one of the first things you’ll need to do is choose the right business entity type. This can be a daunting task, but luckily, Incise is here to help. In this article, we’ll review the top 10 business entity types and help you decide which one is right for you.

1. A sole proprietorship is the simplest and most common type of business entity. This type of business is owned and operated by one person, and there is no legal distinction between the business and the owner. Sole proprietorships are easy to set up and require little paperwork.
2. The partnership is a business entity owned and operated by two or more people. Partnerships can be either general partnerships or limited partnerships. General partnerships are less formal than limited partnerships and don’t have the same level of protection for the partners.
3. Limited liability Company (LLC) is a business entity that offers limited liability protection to its owners. LLCs are flexible and can be structured to fit the needs of almost any business.
4. The corporation is a business entity that offers limited liability protection to its shareholders. Corporations are more complex than other business entity types and have more requirements, such as holding shareholder meetings and electing a board of directors.
5. A cooperative is a business entity owned and operated by a group of people for their mutual benefit. Cooperatives are common in the agricultural and utility industries.
6. The non-profit organization is a business entity that is organized for a public or charitable purpose. Non-profit organizations are exempt from paying taxes on their income.
7. The franchise is a business entity that is owned and operated by a franchisor. Franchises are typically part of a larger company and use the company’s name and branding.
8. Holding company is a business entity that owns and controls other companies. Holding companies are common in the business world and can be used to consolidate ownership of multiple companies.
9. Joint venture is a business organization that is owned and operated by two or more individuals or companies. Joint ventures are formed for a specific purpose and are typically short-term.  Incfile reviewed also have the joint venture business. 
10. A professional corporation is a business organization that is owned and operated by licensed professionals such as doctors, lawyers, and accountants. Professional corporations offer their owners limited liability protection and are taxed as regular corporations. 

Conclusion:   

Choosing the right business entity type is an important decision for any business. Incfile can help you choose the right entity type for your business. Contact us today to get started.