What are the different types of businesses?

Share

Are you interested in starting your own business? Do you know how to find out which one is right for you? Fortunately, there are 10 different types of businesses you can choose from, all with their own unique pros and cons. Depending on your specific personal and professional needs, one may suit your needs better than others. To help you determine which type of business might be best, we’ve created this brief guide to the 10 main types of businesses below.

https://forbes.li/tag/pii_email_ddeffe436cbc1f5b4acf/

Corporation

A corporation is a business that is created by filing articles of incorporation with the state in which it will be headquartered. Corporations offer protection from personal liability, which means that you cannot be sued personally for any actions taken by the company. Corporations are also able to enter into contracts, sue or be sued.

https://forbes.li/tag/pii_email_dddc1a80098c2f26cb98/

For example, if a customer injures themselves on your property and sues your corporation, it would not affect your personal assets.

https://forbes.li/tag/pii_email_ddcc9465aa0a8173be0c/

The drawbacks to this type of business structure are higher annual fees (usually $150-$300 depending on the state) as well as various fees and taxes associated with running the company.