WHAT IS BUSINESS FORMATION?

BUSINESS FORMATION ENCOMPASSES ALL THE PROCESSES HAVING TO DO WITH FILING A BUSINESS IN THE UNITED STATES, HOW THE BUSINESS FUNCTIONS, HOW IT’S TAXED, AND ITS OWNERSHIP STATUS. HERE AT LOIGICA, WE CAN HELP GUIDE YOU THROUGH THIS PROCESS TO KEEP YOUR MIND AT EASE.

What types of businesses are there?

There are many types of business available to start in the United States:

1. Sole Proprietorship:  A sole proprietor business allows the owner and the business to act the same. This means that any liability the company has falls directly on the owner. 

2. Partnership: This business structure allows individuals to enter into a business agreement with a partner. This combines the financial backing but also the financial obligations of the business between the partners. There is a general partnership where both partners are equally liable in the business. In addition, there’s a limited partnership where one partner can contribute to the business but does not have the power to make decisions and lastly a limited liability partnership where all of the owners/partners have limited personal liability to them. 

3. Corporation: When a corporation is filed, it is a separate entity from it’s owners/shareholders. This means the business will have separate financial obligations.

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