Sole proprietorship: this is the most common form of all business organizations. It is simple to create and offers complete managerial control to the owner.
Advantage: The owner has complete control
Disadvantage: The owner is personally liable for all financial obligations of the business (which could be bad if your business suffers financial strife).
 Partnership: this involves two or more people who agree to completely share in the profits and/or losses of a business.
Advantage: It does not experience the same tax burden of profits or the benefits of losses. Profits or losses are instead "passed through" to partners to report on their individual tax income returns.
Disadvantage: Each partner is also liable for the financial obligations of the business (just like in a sole-proprietorship).
 Corporation: this is a legal entity created to conduct business. It is separate from those who founded it; the corporation handles the responsibilities of the organization, not the founders. The corporation can be taxed like a person and can also be held legally responsible for its actions. It can also make a profit and suffer losses.
Advantage: The greatest advantage of a corporation is that it avoids personal liability.
Disadvantage: There is a high cost to form a corporation and it requires extensive record keeping.
 Limited liability company (LLC): this is a "hybrid" form of partnership. It allows owners to reap the benefits of both the corporation and partnership form of business.
Advantage: The profits and losses can be passed to the owners without taxing the business itself, while owners are shielded from personal liability.
Disadvantage: No major disadvantages

When you're trying to decide which type is right for you, ask yourself the following questions.
1. To what extent does the owner need to be protected from legal liability? (Ex. sole proprietorship would not be the answer for someone who wanted a lot of protection).
2. What are the goals of the business owner and can they be adjusted to minimize taxation? (Ex. there are many more tax options available to corporations than proprietorships or partnerships).
3. How much time and money are you willing to devote to formation, record keeping and administration? (Ex. a corporation requires much more detailed record keeping and administration than a partnership).
4. Are you willing to be flexible? (Ex. a partnership or corporation would require that you be flexible with your demands, opinions, goals, etc).
5. What kind of needs will your business have in the future? (Ex. have you thought about what will happen to your business if you decide to sell part of it to a partnership? What about if you die? A sole proprietorship may dissolve after the death/retirement of the owner, but a corporation may be easily passed on).