Types of Business Entities 2

Limited Partnership - There are two types of partners here:General Partners: They run the business and have full liability (they are the bosses).Limited Partners: They are just investors. They put up money but can't tell the boss what to do. Their liability is limited to the money they invested.The "Ostensible" Partnership (Prohibited): An "Ostensible Partnership" (or Quasi-Partnership) is illegal. This happens when two brokers share an office and a receptionist to save money, but they act like separate companies—yet their signs and behavior make the public think they are partners. You cannot trick the public. You are either partners, or you aren't.Corporation (Inc.) - An artificial "person" created by law. It shields the owners from personal liability.Limited Liability Company (LLC) - The most popular modern choice. It offers the liability protection of a corporation but the tax flexibility of a partnership.Limited Liability Partnership (LLP) - Similar to an LLC, often used by professionals like attorneys and doctors, but allowed for brokerages too.