Frequently Asked Questions

An organization created by an individual or individuals to conduct business, engage in a trade, or partake in similar activities. Types of business entities include Sole Proprietorships, Partnerships, Corporations, and Limited Liability Companies (“LLCs”).

Unlike Sole Proprietorships, business entities like Partnerships, Corporations, and LLCs limit the owners, or members, personal liability. This means it can be harder for a debt collector to take the owners’, or members’, personal assets to cover the business’s debts. The personal assets of an owner of a Sole Proprietorship are not protected.

Most small business owners should first register their business in the state where they primarily conduct business. Many states have laws that require a business to be registered in that state if business activities are conducted there, including a physical presence, significant revenue comes from that state, employees work in that state, etc.