Want to start a business? This is what you should know.

There are four main types of business organization: sole proprietorship, partnership, corporation and limited liability company. Many businesses begin as sole proprietorship since it's great for new small businesses. It's owned and run by someone for their own benefit. As they grow and expand, many businesses tend to convert to corporations where it protects owners from being personally liable for the company's debts or legal disputes. Partnership comes in two ways: general partnership where there must be at least two, each owners invests their money, property, labor, and many more into their business and are both jointly liable for all business debts whether you invest a little or not. The other type is limited partnership which requires a formal agreement between the partners. They must also file a certificate of partnership with the state. Limited liability company is the newest of the business forms. It provides owners with limited liability while providing some of the income advantages of a partnership. Limited liability company is one of the most flexible types of business.