What are the 4 main types of business?

In many legal and tax contexts, four common types of business structures are sole proprietorship, partnership, corporation, and limited liability company (LLC). Each type affects liability, taxation, governance, and how you can raise capital.

• The 4 types:

• Sole proprietorship: A single owner with simple setup but no legal separation between personal and business liability. 

• Partnership: Two or more owners sharing profits, losses, and responsibilities under a partnership agreement.

• Corporation (C-corp or S-corp): A separate legal entity that offers liability protection, with specific rules for governance and taxation. 

• Limited Liability Company (LLC): A flexible structure that often combines pass-through taxation with liability protection. 

• When considering structure:

• Consult with legal and tax professionals to understand implications for your specific situation; this is not legal or tax advice.

• Align the structure with your growth goals, ownership plans, and investor expectations.

From an organizational design perspective, Kindred Consulting Group:

• Focuses less on the legal label and more on whether your structure - roles, decision rights, and reporting lines - matches your growth strategy. 

• This ensures that whatever legal form you choose, the internal "operating system" can actually support growth.

This content is for general informational and illustrative purposes only and does not constitute legal, financial, tax, or other professional advice. It is not intended to create, and receipt or review does not constitute, any client–professional relationship with Kindred Consulting Group or its representatives. You should not act or refrain from acting based on any information in this content without seeking advice from qualified professionals who are familiar with your specific circumstances. While efforts are made to keep information accurate and up to date, no guarantees are made regarding its completeness, reliability, or suitability, and any use of this information is solely at your own risk.