General Partnership
This type of entity has 'hands on managers' that are running the business and are liable and responsible for the business actions, including debts of the operation.

Limited Partnership
The limited partnership has limited and general partners. The latter will manage the business on a daily basis and are individually responsible and liable for the debts of the operation. However, the limited partners, who are primary investors in the business, are just limited to the loss of
capital invested in the partnership.

Corporation
The corporation is an organization authorized by state law (Delaware and Nevada tend to be the most popular states) to act as a legal entity distinct from its owners. With its own name, and its own powers to achieve legal purposes, a corporation is its own legal entity and it's the overwhelming choice for entrepreneurs such as you looking to build business credit.

S-Corporation
This is a corporation that is eligible, and does elect to be taxed under the Sub-chapter S of the Internal Revenue Code. Shareholders of the S-Corporation pay tax on the corporation's income by reporting their pro-rate shares of pass-through items on their own individual income tax
returns.

Limited Liability Company (LLC)
The LLC is a hybrid between a corporation and a limited partnership. LLC's (often called a c-corporation) provide protection from personal liability, yet provide the tax treatment benefits of a limited partnership.

More details about the above (PRO's and CON's) of business entities are discussed in our FREE e-book you can download subscribing to our e-zine (just one e-mail PER MONTH) and then following the directions in the subscriber confirmation.