There are several main types of businesses, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). A sole proprietorship is owned by one person, while a partnership involves two or more individuals sharing ownership. Corporations are separate legal entities that can own property and incur debts, and LLCs combine features of both corporations and partnerships, offering liability protection to owners. Each business type has its own advantages and disadvantages. For example, sole proprietorships are easy to set up and manage but offer no personal liability protection. In contrast, corporations provide limited liability but require more regulatory compliance and formalities. Understanding these differences helps entrepreneurs choose the right structure for their needs.