4 Types of Small Businesses: What You Need to Know

Starting a small business? Learn about the different types of small businesses, including sole proprietorships, partnerships, LLCs, corporations, S corporations, handyman businesses, carpentry businesses, online dating consultants, independent developers, non-profi

4 Types of Small Businesses: What You Need to Know

A small business is a great way to make a living and have a positive impact on the world. But before you start your own business, it's important to understand the different types of small businesses and the advantages and disadvantages of each. A sole proprietorship is the simplest form of business and gives you full control over your business. Partnerships are the simplest structure for two or more people to own a business together.

Limited liability companies (LLCs) are a business structure permitted by state law, and corporations and S corporations are also common forms of business. 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 must file. A handyman business is a great option if you have already developed a strong set of skills to help others fix their homes.

You may need a license if you plan to do work that is worth more than a certain amount of dollars, depending on the state. Carpentry is also an excellent small business option if you have a passion for it and the tools to start fulfilling orders. Online dating consultants must have strong communication and interpersonal skills, as well as high levels of empathy. An independent developer needs some training to launch a successful business and start undertaking projects, but there are plenty of training camps available to get you up to speed.

Non-profit organizations are another type of small business that can have a significant impact on causes you believe in. Before creating a business, entrepreneurs should carefully consider what type of business structure best suits their company and confirm the licensing requirements in their state. Many companies start out as sole proprietorships, as this type of business is ideal for many new and small businesses, although it offers the least amount of financial and legal protection for the owner. Event planners can specialize in specific types of events or offer services for all types of events.

Business consultants can help other small businesses with tasks like marketing, accounting, and customer service without needing full-time positions. Manufacturers can use business funding on things like high-tech tools or up-to-date security equipment. Policymakers should understand that not all small businesses are the same and that each type has its own way of contributing to employment and the vitality of the American economy. Start-ups drive most of the creation of new jobs, but Main Street companies employ up to 57 million Americans and need different policies than start-ups do.

Suppliers are an important but less documented type of small businesses that are part of commercial and government supply chains. Videographers should consider taking classes on the type of videography they would like to do in order to be successful in this field.