The corporation is a popular organization for a business unit for several reasons including tax savings, lawsuit protection, and the increased ability of the business to raise money and credibility with the public. Most large firms and many smaller and start-up business are organized as corporations. Corporations’ sell ownership of their entity to shareholders on the stock market.

Partnerships are business entities developed between two or more partners. Generally, the individuals involved in a partnership invest time, money and resources into the business. There are two types of partners defined in a partnership. General partners are totally and completely liable to all aspects of the partnership, whereas limited partners are only liable for their financial investment in the partnership in the form of taxes.

The LLC or Limited Liability Corporation is a newer type of hybrid business entity, designed to provide the limited liability aspects of a corporation, while providing the flexibility of a partnership. LLC’s can be for-profit or non-for-profit entities, and are very easy to start up. For these reasons, the LLC has quickly gained in popularity with many small business owners and is recognized as a corporation in all fifty states.