Types of Business categories

Sole Proprietorship - Sole Proprietorship as it name stats it is owned by an individual. Sole proprietorship is easy to form. It has less legal formalities. Owner and business has no legal separation so owner is liable for any liabilities or debts. Because of single legal entity income is treated as owner income so taxed only once.
Partnership - Partnership is formed by two or more people. Every partner take money and resources with him. It is same as sole proprietorship in term of tax so taxed only once. Every partner is liable for liabilities
LLC ( Limited Liability Companies) - LLC has benefit of both Sole proprietorship and corporate. Tax treated as Sole proprietorship and liability are limited. They have choice to choose different tax treatment.
Corporations - It has separate legal identity. Owner called as stakeholders and there are free from liabilities. There are unfavourable rule of taxation for owners. If owner dead or bankrupt company will continue to exist.

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