Business Entities

Recently, I've been searching for business entities for a future startup. I first checked Wikipedia and learned the types of business entities there. I then go to the link for the Philippines and discovered what are the entities here in our country.

I noted few entities and do some searches about them.

First in the list is the sole proprietorship. As I understood, this entity is of course consists of a single person. It is owned by one and of course controlled by one. A downside in this entity is that the liability of the owner is unlimited. I really do not know what it means but it is said that the owner and the business have the same treatment.

Partnership is another entity. I think a partnership can be general or limited. It must be consists of two or more person. Based from what I read, the profit is divided among the owners or members. Also, the liabilities in a general partnership is also unlimited like those in the sole proprietorship. On the other hand, limited partnership has one or more but not all members has a general partnership and the others have a limited liability up to the amount of their contribution.

I also read about Incorporated (Inc.), Limited Liability Company (LLC.), and Corporation (Corp.). I did not manage to really understand all of them but I hope to some time.

I still do not know what entity to pick for a startup. I do not want to be a solo proprietor, so maybe partnership is a good idea. Inc. and LLC. can be a choice too.