The most popular business types

If you're starting up your own company, you'll need to make a business plan to help you better outline your goals before doing to one of the business types below.

One of the first challenges new business people face is choosing what type of business they want to register. Although there are several different types of companies, choosing one doesn't need to be difficult. Here are the seven most commonly-used business types and some questions to help you pick which company type is right for your startup:


Business types

• Sole Proprietorship is the easiest type of business. Sole proprietorships are held and operated by a single person and are easy to set up.
• Partnership: A company held by two or more people who share responsibilities and earnings.
• Limited Partnership is a business partnership, often between business directors and investors.
• The corporation is a type of fully-independent company with shareholders. One of the most difficult business models.
• Limited Liability Company (LLC) is a mix of a partnership and a corporation, created to make it easier to begin small businesses. One of the most popular company types for startups.
• Nonprofit Organization is a type of company that uses its profits for charitable goals. Tax-exempt, but must match particular rules.
• Cooperative (Co-op) is a business controlled and operated for the benefit of the members of the company that use its services.

Picking the best kind of business
A startup's selection of business structure can have long-lasting effects on the way the company is run and works, including how it files taxes and whether it can hire workers.