Starting your own business can be incredibly exciting. However, it isn’t all fun and games. There are many important decisions that must be made at the very beginning of an entity’s lifespan, such as how it will be capitalized, who will hold management authority, how the entity will be taxed and who will be liable for its contract, tort, and statutory obligations. One of the most important decisions business owners make is determining the type of entity for their business. While the distinction between entity types such as corporations, partnerships, and limited liability companies might not seem like a big deal, the reality is the type of business entity you choose can have a huge impact on the success or failure of your business.