Type of Legal Structure, Business, or Type of Organization

Sole Proprietorship - means that the owner of the business is only ONE. The owner is liable for all liabilities as well as the profit of the company.

Partnership - this business Entity is owned by two or more people who share capital, property, or expertise with the company. The share of profit will be based on the terms established when the entity was created.

LLC (Limited Liability Company) - LLC is much better than Sole Proprietorship. A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. This business can be owned by one or more individuals. 

Corporation - this entity can cause double taxing. This entity realizes loss, profit, pays taxes and distributes profit to the shareholders. The profit of the corporation is taxed by the IRS and then is taxed to the shareholders when dividends are distributed. 

    Two types of corporations:

• S-Corporation - elected a special tax and has some tax advantages over the other.

• C-Corporation - standard or “default” corporation. 

Trust - is established when a person owns a title of a property, subject to the benefit of the owner or keeping it or using it as a benefit of another. 

    Two types of Trust we commonly receive:

• Revocable Trust - terms can be changed anytime.

• Irrevocable Trust - terms cannot be modified after the terms have been created. 

Estate - An estate (or decedent estate) or succession is a legal entity created as a result of a person's death. The estate consists of the real estate and/or personal property of the deceased person. The estate pays any debts owed by the decedent and distributes the balance of the estate's assets to the beneficiaries of the estate.

View all entities:  https://sa.www4.irs.gov/modiein/individual/help/all_organizations_type.jsp