The document discusses different types of business entities including sole proprietorships, partnerships, S corporations, and C corporations. It notes key factors to consider when choosing a business entity such as line of business, number of owners/investors, control and management structure, use of employees or contractors, financing needs, tax implications, and liability issues. The types of business entities vary in their requirements for formation, ownership structure, liability, management and control, taxation, and other attributes.

1. Business Entity Formation By: Karyn A. Riley, Esq.

2. Sole Proprietorship Limited Liability Company Limited Partnership S Corp C Corporation General Partnership Professional Limited Liability Company

3. Which One Are You? Which One Should You Be?

4. Factors to Consider Line of Business Partners and/or Investors Control and Management Employees/Contractors Financing/Capitalization Location of the Business Tax and liability issues

5. Types of Business Entities

6. Sole Proprietorship NOT A BUSINESS ENITY Easiest to form - requires no paperwork! Most businesses start as a sole proprietorship No expenses, no requirements regarding formation, not taxed separately

7. Sole Proprietorship Unlimited personal liability Liability Decision of the the sole proprietor Finance/ Capitalization Generally, use contractors and no employees Employees/ Contractors Unlimited Management/Control Can file on individual taxes Tax No paperwork Formation

8. Partnerships Two or more people involved Types of Partnerships General Partnership Limited Partnership Governed by a partnership agreement If not exists, the Uniform Partnership Act governs in most states

9. General Partnership Joint and several; Unlimited personal liability Liability Decision of the the sole proprietor Finance/ Capitalization Generally, use contractors and no employees Employees/ Contractors Flexible Management/Control Partnership does not pay tax; individuals reports share of loss or gain on personal taxes Tax

10. General Partnership - Formation May be formed without formal operating agreement Most jurisdiction require filing a Statement of Partnership that includes: The Name of the Partnership Address of the chief executive offices Name and address of the registered agent Name of the partners