BUSINESS ORGANIZATION TYPES

There are five types of business organization

• SOLE PROPRIETORSHIP
• GENERAL PARTNERSHIP
• LIMITED PARTNERSHIP
• LIMITED LIABILITY COMPANY (tax passthrough like an S-Corp.)
• CORPORATION (& S-CORPORATION)

In the first two types, each "owner" has unlimited personal liability for all debts and liabilities of the business.

At least one member of the LIMITED PARTNERSHIP must be a general partner and assume unlimited liability for all debts and liabilities of the business.

The LIMITED LIABILITY COMPANY and the S-CORPORATION are treated like partnerships for tax purposes. The LIMITED LIABILITY COMPANY has fewer restrictions on ownership than the S-CORP.