A sole proprietorship is a business owned and operated by a single individual. It is the simplest form of business structure, where the owner assumes full responsibility for all aspects of the business, including debts and liabilities.

A partnership is formed when two or more individuals come together to conduct business. Each partner contributes resources—whether in the form of capital, property, labor, or skills—and shares in the profits and losses based on their agreement.

A limited liability company (LLC) offers business owners protection from personal liability for their company’s debts and obligations, while providing tax flexibility. The LLC is a separate legal entity, allowing owners to avoid the double taxation that typically applies to corporations.

A corporation (c corp) is established when individuals, known as shareholders, invest money or property in exchange for ownership through capital stock. The corporation itself becomes a separate legal entity, distinct from its owners.

S corps are a special type of corporation that allows income, losses, deductions, and credits to pass through to shareholders for federal tax purposes, helping avoid the double taxation faced by traditional corporations.

A nonprofit organization is formed to pursue goals other than profit generation. Its income is not distributed to members, directors, or officers but is instead reinvested to further the organization’s mission.

A professional corporation (PC) is a type of entity created under state law, allowing licensed professionals such as doctors, lawyers, architects, and accountants to form a corporation specifically for providing their professional services.

A cooperative  (co-op) is a business entity owned and controlled by the people who use its services. Profits generated by the cooperative are distributed to its members, known as user-owners, based on their usage or involvement.