What type of business entity should I choose?

When starting a business in Michigan, the type of business entity you should choose depends on a few factors. If you are the sole owner of the business, a sole proprietorship may be the most beneficial. This is the simplest form of business and it allows you to keep full control of your business. The only downside is that you are personally liable for any losses your business might incur. If you are running your business with a partner, then a general partnership may be right for you. This type of business entitles you and your partner to split income, losses, and control of the business, which is advantageous, but you are still liable for any business debts. If you are looking for more protection, then you may want to consider a limited liability company (LLC) or a corporation. An LLC can provide you with liability protection by separating your business and personal assets. A corporation gives you the most protection by providing limited liability to all shareholders, and it offers some tax benefits. No matter which business entity you choose, it is important to make sure you are aware of all the legal requirements and paperwork that must be filled out. Make sure you understand the differences between the various types of businesses and make sure that the type of entity you choose makes sense for your business.

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What type of business entity should I choose?

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