Business Type & Structure Explained

Can't recall what your business type is? Here are descriptions of each type to assist you with recalling your business type.

Limited Liability Company (LLC) is one of the most common business types, its owner(s), called Member(s), are not personally liable for the business's debts. The IRS issues an Employer Identification Number for this business type.

Example Business Name: Business, LLC.

Private Corporations (INC) are a separate legal entity, so owners (known as shareholders, directors, or officers) aren't personally liable for business debts. The IRS issues this entity an Employer Identification Number.

Example: Business, INC.

Sole Proprietorship is the simplest business type to set up and owned by one person, and that individual is personally liable for the business debts and obligations.

LLCs and Corporations can have ONE OWNER, but that does not make the entity type a sole proprietor for purposes of this application.

Partnerships are owned by two or more people whom may share liability personally (like a sole proprietorship), or partners may have limited liability. This includes general partnerships, limited partnerships (LP), and limited liability partnerships (LLP).

Public-traded corporations may sell shares of their business on the Stock Exchange but are subject to regulations and public reporting.

Government entities are local, state, and federal agencies such as schools or municipalities.