Entity Structure

As a business owner, you can choose to operate your company in a variety of structures. Each of these forms of incorporation provides certain benefits and also certain limitations. The legal structure of a business determines how management, taxations, and the regulations the company must follow.

Businesses can operate in a variety of structures, such as a sole proprietorship, partnership, limited partnership, corporation, or limited liability company. We can help you determine the right entity for your company to take to maximize your business success. By taking into account company size, your business goals, we can assist in matching the right entity to your individual company.

The main types of business entities are:

  • Sole Proprietorship—the owner personally owns all of the assets and the company does not have a separate legal identity.
  • Partnership—the company has two or more owners who agree to share the profits and has not formally registered as a corporation, LLC or other entity type. As a general guideline, in a partnership each partner owns an equal share of the business unless there is a written agreement giving one of the partners a majority interest.
  • Limited Liability Partnership (LLP)—the company is a business that is organized and run as partnership but limits the liability of each partner. Requirements for an LLP vary from state to state: Some states only allow licensed professionals to form an LLP while other states allow anyone to form an LLP. Most states require LLPs to register and pay a registration fee, and include “limited liability partnership” or “LLP” in the business name.
  • Corporation—the company has a separate identity from its shareholders, and may be organized for any business purpose. The general requirements are that there must be at least one shareholder and the corporation must have a director(s), president, secretary and treasurer, though in some states the same person may hold all of those positions. Unlike a partnership or sole proprietorship, a corporation continues to exist even when its ownership changes hands.
  • Limited Liability Company (LLC)—the company is a variation of a corporation and a partnership. Unlike a corporation, the owners of an LLC are members rather than shareholders. LLCs offer limited liability and require fewer formalities than a corporation.


*The information provided within this website is meant for informational purposes only and is not intended to replace or stand as legal advice or representation by Brock Law Firm.  For representation or legal advice, please contact our office.

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111 South Post Street, Suite 2280
Spokane, WA 99201
T: 509-622-4707 F: 509-622-4705

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Kennewick, WA 99336
T: 509-622-4707 F: 509-622-4705

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Davenport, WA 99122
T: 509-725-3101 F: 509-725-5854

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