CNBC Select explains the key differences between business structures to help you decide which one is right for you.

A limited liability company (LLC) is a business structure that helps shield the personal assets of the business owner or owners in the event of a lawsuit, legal judgment, or bankruptcy.

"The pick-your-partner principle reflects the notion that members of an LLC have the right to choose with whom they associate in business, because the trustworthiness, creditworthiness and ...

A partnership is a type of business structure that consists of at least two owners who agree to share all profits, losses and liabilities of the business. Since it’s an informal structure, there ...

An LLC combines elements of a sole proprietorship, partnership and corporation, and offers a lot of flexibility for owners. The owners of an LLC can decide their management structure, operational ...

LLC With an LLC, you can easily add another owner to expand Your personal assets can be shielded from financial and legal liability There may be tax benefits versus a sole proprietorship ...

LLC’s are taxed as a pass through entity with attributes similar to a partnership or a sole proprietorship (if there is only one member of the LLC).

If you signed an LLC operating or partnership agreement prior to January 1, 2018, it may need to be amended to accommodate a significant new rule regarding taxation of partnerships. Effective for ...

2. Is the entity taxed as a partnership? If the interest is in an LLC, determine whether it is taxed as a partnership or as a corporation. Under the check-the-box regulations (Regs. Secs. 301.7701-1 ...