As has been quite obvious from the never-ending emails I receive, there is no shortage of confusion over the proper business entity to use. As I have to continually point out, the biggest mistake is when people try to make these choices on their own, without the assistance of professional advisors. That is nothing short of reckless and is no way to start off a business operation.
However, as I have pointed out, it will save time and fees if business owners will acquaint themselves with the basics of the various business structures before meeting with their professional advisors. In that vein, I pass along this IRS Fact Sheet that briefly describes the basics of the four most commonly used business entities.
The best bit of info in this Fact Sheet is at the very end:
It may be important to seek advice from business experts and professionals when considering the advantages and disadvantages of a business entity.
Tax Guru - Ker$tetter Letter 