By: Melanie De Marco
November 19, 2025
Overview on Business Entities and Structures - Part 1
Over the next several weeks this blog series will focus on the various business entity structures available and from a high-level view how they could work for you. We will discuss how professionals are using partnerships, corporations, and blended entities (my term to describe business structures employing a combination of entities) in their business structures.
Most business owners will employ multiple business structures throughout the lifecycle of their company. For example, many business owners start as sole proprietors and then as they become more successful decide to incorporate or form an LLC. Some start as a partnership and convert to a corporation or another more formal business structure that may help with the growing tax or legal liabilities.
Choosing a business structure is one of the most important aspects of your company. The legal structure forms the skeleton of a business by governing its operation and determining its tax structure. These work together to form the basis of how your business will conduct its enterprise going forward. There are several different entity options available, and each has its own set of pros and cons.
The “right” business structure depends on what your own goals or key concerns are. For example, some business owners may be interested in the flexibility, simplicity, and pass through tax benefits of a sole proprietorship or a partnership. Another business owner may be more concerned about the liability protection afforded by a corporation or LLC. A professional practice may be looking to combine a partnership and corporate structure to create liability and tax benefits. Whatever you do, it is important to select a business structure that fits your goals and the practical realities of how you want to run your business.
This series of articles is going to walk you through the practical basics of general and limited partnerships, limited liability companies, corporations, and blended entities, but will not be covering non-profit corporations, social purpose, or mutual benefit corporations. It is important to realize that not every business uses the same model and there is no such thing as the universal best option. Entity selection is predicated on the goals and desires of each business owner.
Navigating the complex world of business structures can be overwhelming; the attorneys at BPE are here to help decipher the business world and assist you structuring an entity that works for your business.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
