When you start a business, you have a lot of important decisions to make, not the least of which is what form your business will take. Different states allow for different business forms, but most offer the following choices: sole proprietorships, corporations, limited liability companies (LLCs), partnerships of various forms (general partnerships, limited partnerships (LPs), and limited liability partnerships (LLPs)). The choice of business form will affect the business owner in a number of ways, including personal liability, income taxes and corporate responsibilities.

It is important to remember that you can always change business forms over time as your needs and your business change. When you enter into a business with another person, it's always a good idea to have a written agreement covering the governance of the business and everybody's rights and responsibilities. These documents are called different names depending on the business type- it could be a partnership agreement, operating agreement, by-laws, etc. If you have questions about picking the right entity form, registering your entity or anything else about corporate governance or business law, click here to get the help a lawyer. A little helpful information now can make a big difference later on.