Why should you spend precious resources on business planning?
Launching a new business venture is one of the most exciting and challenging events of a career. With risks and pitfalls at every turn, the wise entrepreneur invests in up front planning so that their business is built on a solid foundation. Planning on the front end means less headaches and unexpected problems once your business is up and running -- a time when you can least afford the time and expense of putting out fires.

BUSINESS ENTITY DESCRIPTIONS

The following list provides a brief description of the most common types of entities available in most jurisdictions, i.e., Sole Proprietorship , Partnership/Joint Venture , Limited Partnership (LP) , Limited Liability Partnership (LLP) , Limited Liability Company (LLC) , S Corporation , C Corporation (regular corporation) , and Nonprofit Corporation . The descriptions explain some of the pros and cons applicable to these various types of entities. Notably, the list proceeds from the simplest to the more complex forms of entities, and from the least to the greatest protection against personal liability.

• SOLE PROPRIETORSHIP – The sole proprietorship is the simplest form of business entity. It is a form in which an individual conducts business in his or her own name or under a trade name rather than a separate legal business entity

• There is no requirement to register a sole proprietorship with the state (unless you are using a trade name, in which case, you should register the trade name to protect it from use by others).
• There is no double taxation applicable to the sole proprietorship. The sole proprietor is taxed at his or her individual tax rate for the profits earned in the business, under his or her individual name and social security number on his or her individual tax return (Schedule C of IRS Form 1040). There is no business entity level tax.
• There are no corporate formalities to conduct or maintain.
• Sole proprietors have complete control over the business

• There is no limitation of personal liability for the sole proprietor, which means that liabilities, debts, and judgments against the business can attach to the personal assets of the sole proprietor including personal bank accounts, cars, and homes.
  

• PARTNERSHIP / JOINT VENTURE
• LIMITED PARTNERSHIP (LP)
• LIMITED LIABILITY PARTNERSHIP (LLP)
• LIMITED LIABILITY COMPANY (LLC)
• S CORPORATION
• C CORPORATION (REGULAR CORPORATION)
• NONPROFIT CORPORATION