Business Entities

Business entities are legal structures that define how a business operates, is taxed, and how liability is managed. Common types include sole proprietorships (owned by one person), partnerships (owned by two or more people), and corporations (complex organizations that are separate legal entities from their owners). Each type has different implications for taxes, personal liability, and business operations. Choosing the right entity is crucial as it affects everything from daily activities to legal responsibilities and financial implications. Understanding these structures helps business owners make informed decisions that support their goals and protect their interests.