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Frequently Asked Questions

  • What is a business entity?
    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”).
  • What are the benefits of Partnerships, Corporations, and 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.
  • What state should a business entity be registered in?
    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.
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