Sole proprietorship:
The sole proprietorship is the oldest, most common, and simplest form of business organization. In this type of business, the business entity is owned and managed by one person. The sole proprietorship can be organized very informally, and is not subject to much federal or state regulation. This is a relatively simple business type to manage and control. It is best for a business that will remain small, and does not have a lot of exposure to liability. This is also a good option for those who do not earn enough to justify the expense of incorporating their business and the ongoing costs to keep it that way.

General partnership:
A general partnership is generally defined as an association of two or more persons to carry on as co-owners a business for profit. In other words, if two or more individuals do nothing more than verbally agree to conduct business as owners, a general partnership is formed. These partnerships consist of relationships between two or more persons embodied in an agreement. Creation of the agreement establishes rights and duties between the partners and regulates their conduct as they transact business. Because it can be created verbally, there is a lot of leeway here, but it is recommended that the partners define their rights and duties in a written agreement. A general partnership is not required to file a Statement of Partnership Authority with the Secretary of State but it is recommended. This is best for two people who are going into business together and do not want to deal with the paperwork of forming legal partnerships.

Limited partnership:
A limited partnership is an entity having one or more general partners and one or more limited partners. A limited partnership is an entity distinct from its partners.

Corporation:
A business corporation is the most complex form of business organization, and it has requirements, but it is also the one that protects business owners most completely. A corporation is an association of individuals created by law with powers and liabilities independent of its stockholders. In essence, the corporation is a separate and distinct entity from the people who control, manage, and own it. Because it is considered a separate entity, the corporation generally owns the corporate property, owes the corporate debt, is the debtor that gets sued or the creditor who sues. In other words, the business is the entity, not the individuals who started it.

Limited liability company or corporation:
This is a business organization that combines elements of both a corporation and a partnership. Similar to a corporation, owners of a limited liability company are generally not liable for the obligations of the business. However, like a partnership, income and losses of the company go through the company to the partners avoiding double taxation. So, your business is not taxed, and then you taxed on income as well, it is only taxed once.