The three main business structures you need to know are Sole Proprietorship, A Limited Liability Company (LLC), and Corporation. Here is a break down of each:

LLC: An LLC can be owned by one person (Single-Member LLC) or an LLC can be owned by two or more people (Multi-Member LLC). This business structure is designed to protect your personal assets in the event your company is ever sued. If sued, the company is liable and your personal assets cannot be seized.

Corporation: Large company with shareholders and investors. The owners are called "shareholders." With corporations, you must elect a Board of Directors (to oversee the company) and you must elect Corporate Officers who run the day-to-day operations of the business.

Sole Proprietorship: A Sole Proprietorship is when a person does not form a business entity and they operate their business as themselves. In the eyes of the government, YES!, you are an actual business. Think of people like freelancers such as barbers, hairstylists, etc. Unlike an LLC, with a sole proprietorship if you are sued, then your personal assets are at risk.