-Sole proprietor: In this case, both the owner and the business are the same. You have the option to declare both your business earnings and expenditures on a Schedule C form, which is submitted alongside your personal income tax return (Form 1040).
-C corporation: A C corporation is an independent legal entity subject to taxation. In this case, you will file Form 1120 for your business return..
-C corporations pay taxes on their profits, and shareholders are taxed on dividends and gains received, leading to double taxation..
-Partnership: Partnerships are business entities formed by two or more people who share ownership and profits/losses. They file a separate tax return from the partners themselves. You will use Form 1065 in this case. This return reports the partnership's overall income and expenses, and the partners then report their share of the partnership's profits or losses on their individual tax returns..
-S corporation: These are specifically elected tax classifications for corporations that meet certain requirements. They generally "pass-through" their profits and losses to the shareholders, who then report them on their individual tax returns. This avoids double taxation on corporate profits. For this case, you will use Form 1120S.