Limited Liability Company
In recent years this relatively new business entity (new compared to corporations that is) has generated a substantial amount of interest due to the fact that it provides both the limited liability of a Corporation and the single level pass through taxation of a Limited Partnership. Find out more about LLCs.
The S Corporation also offers the limited liability factor, but is also not a taxable entity at all. However, while the S Corporation is not taxed, the profits it generates, whether distributed or not, is taxable to the shareholders at their own personal tax rate. Find out more about S-Corps.
This particular entity has basically the same attributes as a General Partnership except for one very important distinction: It has Limited Partners who usually do not have liability for business management responsibilities. Find out more about LPs.