If an individual wishes to begin a business of their own, there are several alternatives available to them.

The first would be a proprietorship where the individual would operate their business in their own name using their own Social Security number.

Another option is a corportation. A corporation is a separate legal entity established to operate the business. A corporation provides increased benefit options for the owner and limited liability as long as the basic formalities of a corporation are maintained.

A Limited Liability Company (LLC) is an entity that provides the benefits of a corporation, yet is taxed as a partnership and avoids the double taxation issues, which affects most corporations.

If you have rental income or passive investment issues and want to provide asset protection, you could also utilize a Family Limited Partnership (FLP).