Business Entity FAQs What types of business entities are there? Types of business entities include sole proprietorship, partnership (general and limited), corporation, S-corporation, and limited liability company. What is a Business Entity? A business entity is a legal term used to denote the types of businesses that operate under their names and are separate from their owners. What types of business entities are suitable for a new business? New businesses should opt for types of business entities that have a low cost and give the opportunity to manage it easily. It is also important to consider types of business entities that provide limited liability in order not to become fully responsible for debts incurred by your company. This means that types of business entities include C-corporation, S-corporation, and limited liability companies. When do types of business entities change? Types of business entities can be changed if they are no longer suitable for your company. This means that types of business entities should always fit the needs and goals of a particular enterprise regardless of any changes in its situation or environment, including legal requirements. Why is it important to choose the right entity for your business? If types of business entities are not chosen correctly, your company may face serious problems in terms of taxation and management, which can lead it to failure before its launch. Entrepreneurs should consult with a professional tax adviser or attorney to avoid making mistakes at this initial stage. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.