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Starting a Business

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Corporation

Corporations are the most common type of business set up. They give their owners (called “shareholders”) limited liability. What that means is the shareholders are not liable for the corporation’s debts or other obligations (like promises the business makes in a contract, for example).

Limited Partnership

Limited Partnerships are used to bring in passive investors into your business. So long as they are not actively involved in business decisions, limited partners are not liable for the partnership. Limited Partnerships are also very useful for taxes because unlike a Corporation, they are not taxed on their own.

General Partnership

General Partnerships are a way for businesses to work together on a project or opportunity. Unlike Corporations and Limited Partnerships though, the partners are liable for the business. The advantage of a General Partnership is that it isn’t taxed on its own like a Corporation is.

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