- Table of Contents
- • Which kinds of business organization or business entity will limit my liability to business creditors?
- • Which types of business entity are best for tax purposes?
What kinds of business organization of business entity will limit my liability to business creditors?
Leading forms are corporations; limited partnerships, and limited liability partnerships (LLPs). General partnerships and sole proprietorships don’t limit owners’ liability. Limited partnerships limit liability of some partners (limited partners) and not others (general partners).
Which types of business entity are best for tax purposes?
It depends on the income level and amount you intend to withdraw for personal spending. If you need all money you make, corporation will not offer much tax advantage. However, there may be other consideration, which you need to keep in mind while deciding on the business structure.