There are many different types of business entities to choose from and each of them have different characteristics. This can make choosing the right entity to operate your business or hold your assets confusing.
Is a corporation or limited liability company more appropriate? What about a limited liability company or a limited partnership? If it is a limited liability company, what is the most beneficial tax treatment option: partnership, S-corporation, c-corporation or disregarded entity? Is a trust recommended?
Each of these different entities have unique characteristics and the type of entity chosen can make a significant difference in the type of liability protection provided and the tax treatment imposed on income generated. Improper or incomplete formation can result in no protection at all.
Before setting up any business entity, visit with your attorney about what will best accomplish your specific objectives.