We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area.
Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

4 Types of Small Businesses You Should Know About

When you’re thinking of starting your own business, you must understand all the options available to you. This blog is dedicated to diving into the details of four types of small businesses - sole proprietorship, partnership, LLC, and subchapter C corporation. Each kind of business has unique features, and by understanding them thoroughly, you’ll be able to make the right decision for your business. So, what type of business is right for you? Read on to find out!

  1. Sole Proprietorship

There are many benefits to owning a sole proprietorship business. This option allows you to operate your own business without employees and has many advantages, such as setting your own hours and prices. As a sole proprietor, business income or loss is reported on your personal tax return, but sole proprietors should pay self-employment taxes (social security and Medicare). Depending on income, quarterly payments may be required. A sole proprietorship might be a sound option if you’re interested in starting a business. Consult an accountant or tax professional to learn more about this type of small business and its many benefits.

  1. Partnership

There are many small business partnerships, but the most common type is a general partnership. Business income or loss is passed through personal tax returns in a general partnership. Your assets are responsible for the partnership’s debts. Two or more owners/operators are involved in a general partnership, which may be either general or limited. 

A limited partnership is a business partnership in which a limited number of partners operate the business while “limited partners” provide investment. Business income or loss is passed through personal tax returns in a general partnership. Your assets are not responsible for the partnership’s debts. Individuals and businesses typically form partnerships to gain synergy and share resources. So, if you’re considering starting or joining a small business partnership, make sure you know the types of partnerships available and their benefits.

  1. Limited Liability Corporation (LLC)

When it comes to business, a variety of options are available to you. One of these options is the limited liability corporation (LLC). An LLC is a business structure that can separate personal assets from the business. This can be a good option for people who are new to business or want to start a business but don’t want to take on the risk of personal liability. There are many different types of LLCs, so be sure to research which one is right for your business before forming it. Business income or loss is passed through personal tax returns, so all members are allowed full participation in the business.

  1. Subchapter C Corporation

As the name suggests, this kind of business is typically used by small business owners who want to protect their personal assets from the risk of financial loss. This means that the owner’s personal assets are not at stake in the event of business failure. Furthermore, subchapter C corporations’ benefits include the ability to raise funds easily. However, this is often offset by high administrative costs and complex rules and formalities that differ from state to state. Subchapter C corporations are subject to double taxation of earnings, which means that business income is taxed twice - once as business income and again as personal income. So, if you’re considering starting or running a small business, consider using this type of business structure.

Starting and operating your own business can be an exciting and rewarding experience, but it can also be a lot of work. To make sure that you make the right choices for your business, you must have a general understanding of the different types of small businesses. In this blog post, we have outlined the four types of small businesses and provided a brief overview of each. Take some time to read through this post and learn about each type of business. From there, you can make the best decision for your business and start on the right foot!

More Than a Safety Net: How Life Insurance Can Strengthen Your Financial Plan!

When people think about life insurance, they often associate it with protection for their loved ones. While that remains an important purpose, life insurance can also be part of a broader financial plan. Alongside savings, investments and other financial goals, the right coverage can help create stability and support the plans you are building for […]

Read More

Protect Your Business: Proven Tips to Minimize Risks and Expenses!

Running a business involves balancing growth opportunities with everyday challenges. From managing expenses and protecting employees to handling unexpected disruptions, risks can appear at any stage of your journey. While every business faces uncertainty, smart planning can help reduce financial pressure and create a stronger foundation for long-term success. 1. Understand your biggest business risks […]

Read More

The Small Business Insurance Checklist: Protecting Your Business from Day 1!

Starting a small business takes planning, dedication and careful financial decisions. While many entrepreneurs focus on customers, operations and growth, protecting the business from unexpected risks is just as important. The right insurance coverage can help safeguard your investment, employees and future plans by providing financial support when challenges arise. 1. Start with general liability […]

Read More
© 2026 Sarvey Insurance Designed by Amplispot
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram