What are the types of corporate entities?

Corporate law in New Hampshire governs how businesses form, operate, and dissolve in the state. It includes the various types of entities that a business may choose from when setting up a business. The most common type of entity is the corporation, which is formed by filing Articles of Incorporation with the New Hampshire Secretary of State. After forming a corporation, the business must adhere to certain rules and regulations set by the state regarding corporate governance. Corporations also have limited liability for the owners, meaning that they are not personally responsible for any debts or liabilities of the entity. Another type of entity is a limited liability company (LLC). LLCs provide the flexibility of a partnership with the same limited liability that corporations enjoy. In addition, LLCs do not have to adhere to the same formal rules as corporations. Partnerships are the third type of entity. A partnership involves more than one person who agrees to share profits and losses and has joint management of the business. Similar to LLCs, they do not have the same formal rules as corporations. The final type of entity is a sole proprietorship, which is owned and managed by a single individual. This type of business does not require any formal registration with the state and the owner is not separate from the business, meaning that they have unlimited liability for the business. These are the four main types of corporate entities that can be formed under corporate law in New Hampshire. Knowing which one is best suited for your business and what rules and regulations must be followed is important for success.

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What are the types of corporate entities?

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