What are the different types of business entities?
There are several different types of business entities that can be set up in Oregon. The main types are sole proprietorship, partnership, corporation, and limited liability company. A sole proprietorship is a type of business owned and run by just one person. This type of business has no formal structure and is relatively easy to set up and maintain. The downside is that the owner is personally liable for all of the business’ debts and obligations. A partnership is a type of business owned and operated by two or more individuals. Each partner shares in the profits and losses and is personally liable for all business obligations. A written partnership agreement is highly recommended and should include the rights and responsibilities of each partner. A corporation is an independent legal entity owned by shareholders. This type of business is more complex to set up and requires more paperwork than other types of business. It also protects shareholders from personal liability for business debts and obligations. A limited liability company (LLC) is a type of business entity that provides the owners with protection from personal liability while also providing tax benefits. LLCs are relatively easy to set up and maintain, and require less paperwork than corporations. Each type of business entity has its own advantages and disadvantages. It is important to research and consider all options before deciding which type of business entity is most beneficial for the particular situation.
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