Sole Proprietorship

Partnership

Limited Partnership

Limited Liability Company

Corporation

Definition

A business owned by one person  

An association of two or more persons to carry on as co-owners a business for profit

A specialized form of partnership, with general and limited partners

A hybrid legal entity combining corporate and partnership characteristics

A separate legal entity owned by the shareholders

Creation

No specific formalities required for creation; generally, fictitious name filing needed

Must file certificate of limited partnership with the state

Must file articles of organization with the state

Must file articles of incorporation with the state

Check for appropriate license requirements

Owner Liability

Unlimited

Joint unlimited

General partners, -- unlimited; limited partners -- limited

Limited

Limited

Taxation

No separate tax on business

Business taxation

Management

By owner

By all partners, unless agreed otherwise

By general partners

By members or outside managers

By board of directors