There are many different types of business organizations that an entrepreneur needs to consider when starting their business. Business formation is a necessary first step in starting a business because an entrepreneur needs to know and understand the differences in creating a legal structure for their business. How an entrepreneur structures their business will have a significant impact on the business's tax liability, management, and the owners' personal liability if the business is sued. In Laurence's article, she states that “the more you know about starting a business, the more power you have to form an organization that turns into a lasting source of income and satisfaction.” Therefore, the most common way to organize a business would be to consider the following options: sole proprietorship, partnership, limited partnership, limited liability company (LLC), corporation (for profit), non-profit corporation for-profit (non-profit), and cooperative. Many entrepreneurs decide that the initial ownership is a single company or if ...