You'll buy supplies, hire employees and do all the thousands of things you did before in the same ways you did them before. But obviously, there are differences. No one would go to the bother or expense of setting these things up otherwise. Here are where those differences could come in. Read these and then take our survey to see what type of business organization might be best for your business.
All businesses go about the process of computing taxable income in the same basic way.
Business income minus business deductions. But there are significant differences in how the entities are taxed. Tax rates are different and the corporate form of business subjects you to potential double taxation. Partnerships don't pay taxes, the partners do. Partners use the partnership's Schedule K-1 to report their shares of the partnership's income and deductions on their own personal tax returns.