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There are different types of businesses to choose when forming a company. Typically, there are four main types of businesses the sole proprietorship, partnership, corporation, and limited liability companies (LLC). A sole Proprietorship is an unincorporated company that is owned by one individual only. It's arguably the most straightforward business structure and is simple to set up and manage. In a partnership, as the name states, partnership is a business owned by two or more people. Like sole proprietorships, partnerships are able to take advantage of flow-through taxation. This means that the income is treated as the owners incomes so it is only taxed once. Limited Liability Company (LLC) are one of the most flexible tyoes of businesses. LLC combine aspects of both partnership and corporations. They retain the tax benefits of sole proprietorship and the limited liability of corporations. Lastly, a corporation it is a separate legal entity created by shareholders. Incorporating a business protects owners from being personally liable for the company's debts of legal diputes. A corporation is more complicated to create, as compared to the other three types of businesses. There are three main types of corporation the C corporation, S corporation, and Non-profit corporation.