After making the decision to start a business, there are many questions to be answered, and one of the first that you should consider is, “What form of business entity is right for me?" The basic choices include: Sole Proprietorship, Partnership, Limited Liability Company, and Corporation. Each of these has various sub-types, and they each have advantages and disadvantages. Before you jump into the unknown, learn about the risk and tax characteristics of each. We will form a hypothetical company and walk through the government filing process.