Business Forms

A business starts with an idea, a desire, or a plan from an individual or a group working together. Often, thoughts about what form the business should take are not high on the list of priorities. They may not need to be right away, but, at some point in the early stages of planning, the business form will need to become a priority.

The form a business takes is determined by many factors, but the two most important ones are liability protection and taxes. Each business form provides varying benefits in both areas. In this lesson, we will discuss the various types of business forms and when you would choose one over the other.

There are generally four types of business forms (with some variations). The four basic types are

• sole proprietorships,
• partnerships,
• limited liability companies, and
• corporations.