The sole proprietorship is simplest and least expensive but provides no liability protections.A general partnership requires a separate legal document and one or more partners.This type of entity provides some limited protection from liabilities and profits are taxed at the individual level.A limited liability company provides more protection from liabilities and,similar to the partnership,is taxed at the individual level.Corporations have more protection from liabilities but are also subject to double taxation-at the corporate level and individual level.