This tool is intended as a guide only and is not offered as professional legal or tax advice. We strongly recommend that you consult with an attorney and/or certified public accountant to determine the best business structure to choose when forming a business.
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Agree CancelA sole proprietorship is created when a single individual owns the business and engages in a business activity without creating a legal entity.
A general partnership is created when two or more persons associate to carry on a business for profit.
A joint venture is a general partnership typically formed to undertake a particular business transaction or project and is intended to exist for a limited time period. Is created with a specific project in mind and generally dissolves once the project has been completed.
An association is created by a group of persons with a specific purpose and is generally treated as a corporation.
A corporation has limited liability, central management, perpetual duration, and transferability of ownership interests and can be formed for profit or non-profit.
A professional corporation is a corporation formed by licensed professionals.A benefit corporation is a relatively new type of for-profit corporation election which combines the benefits of both a profit and non-profit corporation.
A non-profit corporation may be formed for any lawful purpose and is generally ran by a Board of Directors and may also have members.
A Cooperative association is a special type of corporation in terms of its activity and may form based on its engaging in: 1) agricultural activities or 2) broadband internet services.
A limited liability company is a distinct type of profit entity in that it has the powers of both a corporation and a partnership. One or more persons may own a limited liability company.
A professional LLC is a type of limited liability company formed for the purposes of professional business practice.
A partnership can file as a registered limited liability partnership to limit the liability of its general partners. One million dollars of general liability insurance, which covers the partners and the partnership, must be carried at all times.
A limited partnership is formed by two or more persons who act as one or more general partners and one or more limited partners.
A voluntary association is formed by a group of individuals who enter into an agreement, usually volunteers, for the purpose of conducting business, whether profit or non-profit, but does not include an organization formed as an unincorporated non-profit association.
An unincorporated non-profit association consists of members joined by mutual consent to pursue a common lawful purpose, usually for a temporary cause, that is not for profit.