In the United States, a business entity can be incorporated as one of the following:

1. Sole Proprietorship – This type of business is owned and operated by a sole trader, where the distinction between the owner and the business is minimal. Since profits and losses solely belong to the owner, the business is exempt from taxes.

• Benefit: Direct ownership with no distinction between owner and business.
• Tax Advantage: Exemption from business taxes as profits and losses solely belong to the owner.

2. Partnership – Partnerships are created by two or more individuals or businesses entering into an agreement to share profits and losses. The partnership itself is not taxed and is only required to file an informational report to the government, disclosing how profits and losses were distributed among the partners.

• Formation: Collaboration between two or more entities, sharing profits and losses.
• Tax Aspect: The partnership itself is tax-exempt; only an informational report is required.

3. Limited Liability Company (LLC) – LLCs are highly flexible business entities. Members may or may not have limited liability, may or may not have managers, and can opt for taxation as corporations, partnerships, or exemption from taxes like sole proprietorships.

• Flexibility: Highly adaptable structure with optional limited liability for members.
• Management: Choice in having managers or not, and flexibility in tax treatment (corporate, partnership, or tax exemption).

4. Corporation – Corporations are entities with limited legal liability, distinguished from their owners by a corporate veil. A corporation may be managed by one person or a board of directors. Corporate taxation is more intricate compared to other business entities.

• Legal Distinction: Separation from owners with limited liability.
• Structure: Can be run by one person or a board of directors.
• Tax Complexity: Involves intricate corporate taxation compared to other business entities.

Navigate the intricacies of business incorporation to align with your goals and preferences.