Definition: A business owned by one person.
✅ Simple to form
✅ Income reported on personal tax return
❌ No liability protection — personal assets are at risk
Definition: A business owned by two or more people.
Types:
General Partnership (equal liability and control)
Limited Partnership (investor partners only liable for their investment)
✅ Shared capital and workload
❌ Shared liability and risk of disputes
Definition: Hybrid structure that combines liability protection with pass-through taxation.
✅ Limited personal liability
✅ Flexible taxation
❌ Must register and pay fees to SCC annually
C-Corp: Separate legal/tax entity; subject to double taxation
S-Corp: Pass-through taxation; must meet IRS requirements
✅ Good for raising capital
❌ Heavier regulation and paperwork