The LLC is a new, more simplified version of a corporation. LLCs don't own stock, but the structure allows you more flexibility in the way you operate your business. The LLC structure is preferable to a corporation, especially if you own property that's likely to increase in value. With a corporation, shareholders are subject to a double tax when the property is sold. An LLC does not pay tax on its income, while a corporation does.
Some states require LLCs to have two or more members.
A married business owner can include a spouse as a member. If you live in one of those states requiring more than one owner, you'll be best off taking the corporation route. Partnerships Partnerships are unincorporated companies. If you choose to partner with a friend or family member, no matter how smoothly the business runs at first, problems may arise. That's when you'll be glad to have the guidance of a partnership contract.