Tantamount to the bylaws of a corporation. Not all of the states require a written operating agreement but, from a practical and prudent standpoint, there should be one, especially considering the IRS regulations relative to partnership taxation. An association of two or more persons organized to conduct a business for profit. It is not a separate entity apart from its owners or partners. An LLC will be taxed as a partnership and not as a corporation if it only has two of the four corporation characteristics.
Partnership taxation is usually desirable because of certain tax benefits available.
Sole Proprietorship Oldest, simplest, and least complicated form of doing business. Individual, sole owner makes all the decisions and has absolute power. Personally responsible for performance of all contracts and no protection from lawsuits etc. Personal assets that have no relation to the business are at risk.