What type of business entity should I choose?

Choosing the right type of business entity for your business is an important decision. In Missouri, the types of business entities you can choose from are sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, and limited liability company. A sole proprietorship is a business owned and operated by one person. It’s the simplest form of business, and the owner is responsible for all losses and liabilities. A partnership is similar to a sole proprietorship, only there are multiple owners. Each partner shares in the profits and the liability. While a written agreement is not required, it’s a good idea to have one in place. A limited partnership is similar to a general partnership, but there is one partner who is a general partner and several others who are limited partners. The limited partners’ liabilities are limited to the amounts they have invested in the business. A limited liability partnership (LLP) is similar to a partnership, but the partners’ liability is limited. This is a great option for professionals, such as lawyers or accountants, who want to limit their liability to their own mistakes. A corporation is owned by its shareholders. The shareholders have limited liability and the company has the authority to do business in its own name. A limited liability company (LLC) is a hybrid of a corporation and a partnership. The owners’ personal assets are not at risk if the business runs into trouble. This type of business entity is a great choice for business owners who want to limit their personal liability while still taking advantage of the tax benefits of a partnership. The business entity that you choose will depend on your individual circumstances. It’s important to do your research and speak with a qualified attorney or accountant to determine which type of entity will be best for your business.

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What type of business entity should I choose?

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