favorite way to structure a company?

sole proprietorship:

>you own and run the company all by yourself

>all revenue from it counts as your own for taxation purposes

general/limited partnership:

>you share ownership with someone else

>general partners are typically involved in day-to-day management of a company

>they're also equally and jointly liable for everything, meaning one of them can do something illegal, and everyone would be liable for it and pay in proportion to their obligations

>limited partners don't manage much; they usually just provide cash

>they're aren't liable for someone else's actions and vice versa

>everybodies income from the company is taxed, but not the company itself

limited liability partnership:

>pretty much the same thing as limited partners, but without the restrictions on management and no need for damages to be paid in proportion to obligation

limited liability company:

>generally (though not necessarily), a partnership where, depending on whether it's member-managed or manager-managed, is usually ran by everyone, or by one person or group of persons that everyone else appoints

>limited liability means that, once the companies' assets are dried-up from damages or what have you, nobody can come after your personal assets (with some exceptions in cases of criminal wrong-doing)

>is usually taxed in the same way as partnerships, though this can be changed to that of a corporation if desired

corporations:

>has a lot of people who run it in different ways i.e. CEO, COO, board of directors, etc.

>has the same limited liability of LLCs

>is subject to double taxation, where the profits of the company is taxed, and then the income of it's shareholders are also taxed

>mostly chosen for the numerous ways to gather capital that it has

Franchise:

>basically the same thing as a corporation, but it rents out it's marketing to others for a fee