You have a number of options when you start your dream business.

There are advantages to each option, except maybe a partnership. Let’s deal with this one first as in my opinion it is the least desirable. Even in well-written partnership agreements, there can be many drawbacks. Either partner can bind the partnership to contracts and loans with or without the knowledge or consent of the other partner. The death of either partner or dissolving the partnership presents some difficult, and many times unpleasant, problems. So, an LLC, S Corporation, or a C Corporation are much better options.