Starting your own business can be easier than you think.

Corporations

• Shareholder liability is limited to loss of amount invested in the corporation
• Shares can be easily traded
• Dividends are taxed at a lower rate than wage income

Small corporations (sub-S)

• Easier for individuals to administer
• Corporation is not taxed, individual owner pays taxes
• Liability protection

limited liability companieS (aka LLC's)

• Liability protection
• Combines the benefits of a partnership with those of a corporation
• LLC is not taxed, individuals pay taxes as though the LLC were a partnership
• Better protection from creditors and from bankruptcy trustees

limited liability partnerships (llp's)

• Like LLC's, except that the general partner is fully liable
• Great protection for limited partners from creditors and bankruptcy trustees