Which business entity type is best for your business can vary because every business is different. The two most common business entity types are:
A Simple Corporation or S Corp – where a business has elected to be taxed as a corporation
A Limited Liability Company (LLC) – where business owners are taxed at their personal tax rates
With a mix of legal and accounting questions, talking to an accountant and a lawyer will help you determine which entity type is best for your business. The S-Corp and LLC are common because they offer some protection for the owners from liability for the business’s debts.