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For those of you looking for document templates you came to the wrong place. ;)  By organizational forms we mean the way that a firm is organized for tax and legal purposes. 

There are three basic types of organizational forms and then quite a few variations of these basic forms. The three basic structures are

1. Proprietorships
2. Partnerships
3. Corporations

Also organizatioal structure (or form) was covered in a FinanceProfessor Blog entry. 

Which form is right for you is not as easy as we like to make it.  Generally speaking the things you want to look at are how much it costs, what liabilities are there, and taxes.  

I would urge you not to run your business as a proptietorship as there are few advantages excpet for ease of strating it.  However, there are a great many advantages to both S-Corps and LLCs.  C-Coprs are also very good but here you have the problem of double taxation which mean you pay tax on any money you take out and the firm pays taxes on the original earnings.

Before you make any final decision as to the orgaizational form you should speak with a lawyer in your state.  The laws are by and large similiar but different enough (especially for LLCs) theat it would behoove you to speak first with an expert in your area.  To learn more about this issue here are some links I would highly recomend include: 

Tannedfeet.com- This site is the reason I am not including more on my site.  They do such a good job I will expend my efforts elsewhere.  Top notch!
 
 

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