Dear Customer (name blocked for privacy),

In this situation only organizations which provide their owners with the protection of personal assets, through limited liability, should be selected. That means that only corporations, limited liability companies, or limited liability partnerships should be considered. While a limited liability partnership offers limited liability to protect owners' personal assets from company lawsuits, they also require quite a bit of administrative duties and agreements between the partners, depending on state legal regulations. Corporations must be carefully formed and then have proper tax selections made in order to prevent double taxation of corporate income. For example, a corporation may elect to be an S Corporation which would permit the corporation to be taxed only when it pays salary to the owners, not when it earns money, which a regular corporation is. But, again, a corporation is normally required to meet several regulatory requirements: Articles, minutes of meetings, etc., which can become bothersome yet be trouble if they are ignored (piercing of corporate veil, etc.). Therefore, because a limited liability company permits taxation on a personal basis, has few administrative duties, and also offers limited liability protection to its owners, it would be the best form of business.