As a San Diego North County business attorney, I am frequently asked:
“What type of business should I be?” It generally depends on what kind of business you want to conduct. The type of business entity should reflect the kind of business you do.
“What business entities are commonly used?” There are generally six most common business entities used today which are:
Limited Liability Company
Subchapter S Corporation
“What is the difference between the different types of business entities?” Here is a breakdown of the differences:
1. SOLE PROPRIETORSHIP
A SOLE PROPRIETORSHIP = is a business owned and operated by an individual. Sole proprietorships are the basic forms of business organizations, which require no formal type of government filings to form the business and are not required to follow any type of operating formalities.