It depends. There are various types of organizations and entities to start a business depending on the number of owners, the liability and the risk that would like to be retained, and the tax treatment for each organization.

There 5 main types of business organizations:

  • Sole Proprietor
  • General Partnership
  • Limited Partnership
  • Limited Liability Company
  • Corporation

Of course, there are several additional variants among these organizations depending on the number of owners, their residency, tax treatment, among others.