The Structures You Can Choose From...
		Like your body has a skeleton, every business must have a structure to support it. You must select one of the available five structures that the state of Indiana offers.  These include the sole proprietorship, partnership, corporation, limited liability company and a limited liability partnership.  The selection of this structure must be made with care and with great thought.  The structure you choose will determine how much liability you will be exposed to, how much in taxes you may have to pay, how much control of the organization you may have and so forth.
		SOLE PROPRIETORSHIP A sole proprietorship is a business owned by one individual.  A sole proprietorship is not considered to be a legal entity under the law, but is an extension of the individual that owns it.  The owner has possession of the business assets and is directly responsible for the debts and other liabilities of the business.
		PARTNERSHIP A partnership is where two or more individuals join together to run a business venture.  Each of the individual partners has ownership of company assets and responsibility for liabilities, as well as authority in running the business.  The authority of the partners and the way in which profits or losses are to be shared is usually controlled by the partnership agreement.
		"C" CORPORATION  or   "S" CORPORATION A corporation is a separate legal entity which exists apart from its owners.  It is sort of like its own person in that a corporation has all the legal rights of an individual and is responsible for its own debts.  It must also file income tax returns and pay taxes on income it derives from its operations.  Typically, the owners or shareholders of a corporation are protected from the liabilities of the business.  However, when a corporation is small and new, creditors often require personal guarantees of the owners before extending credit.
		LIMITED LIABILITY COMPANY A limited liability company (LLC) is a hybrid entity that has many characteristics of a partnership and a corporation.  LLCs are composed of members who may participate in the management of the company.  These members have limited liability like a shareholder of a corporation or a limited partner and may select a "manager" to manage all or some of the business of the company.
		LIMITED LIABILITY PARTNERSHIP A limited liability partnership  (LLP) is a general partnership that offers limited liability to all investors while preserving the opportunity to obtain pass- through tax status reserved for partnerships under federal and state laws.  An LLP is much like a limited partnership, but there are no general partners exposed to unlimited liability, and there are no limitations on involvement in management by limited parties.