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Types of legal entities used for operating a business

What are some common types of legal entities used for operating a business? What types of business entities does the U.S. tax system recognize? What are tax and nontax advantages of business entities recognized by the tax system?

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What are some common types of legal entities used for operating a business?

Legal business forms include:

Sole proprietorships
Partnerships
Joint Ventures
Limited liability companies
Corporations
Trusts
Estates
Non for profit entities
Private foundations

What types of business entities does the U.S. tax system recognize?

The tax system recognizes all of the types of business with the following caveats:

1. A joint venture is more like a short term partnership which the tax system would call a ...

Solution Summary

In a 335 word solution, the questions are answered with 2 or 3 sentences for each question.

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