For the purposes of this section and § 301, 7701-3, a business entity is any entity recognized for federal tax purposes (including an entity with a single owner that may be ignored as a separate entity from its owner under Articles 301, 7701) that is not properly classified as a trust under Articles 301, 7701-4 or otherwise subject. When starting a business, you must decide what type of business entity to establish. Your form of business determines which income tax return form you should file. The most common forms of business are the sole proprietorship, the joint stock company, and the S corporation.
A limited liability company (LLC) is a business structure allowed by state law. Legal and tax considerations come into play when selecting a business structure. The term “person” shall be interpreted and include a person, a trust, an estate, a company, an association, a company or a corporation.