One of the best-known and most widely used business entity forms is the corporation.

A limited partnership is a partnership with two classes of partners: general partners and limited partners. The general partners operate the business and are personally liable for all obligations of the partnership. The limited partners do not have any control over the business, other than to determine who will manage the business. Limited partners share in the profits of the partnership but their losses are limited to the amount of their contributions to the partnership.

If a business is going to be owned by more than one owner, the simplest business form to create and operate is a general partnership. Although a partnership is more complicated to form than a sole proprietorship, it is not as complicated as a corporation.

Whether you've purchased an existing business or started one from scratch, you must decide which form of organization (sometimes referred to as "business entity") is best for your company. The decision can be difficult to make. There are several choices, and each has its advantages and disadvantages. Make sure that you consult with your attorney or accountant before making a final decision.

The easiest and least expensive way to begin operating a business is as a sole proprietorship. You simply decide to begin operating the business as a sole proprietor and it's done.

There are basically two types of partnerships:

After deciding that you're going to start your own business, your next step should be to begin planning the most basic organizational aspects of your business - what you're going to call yourself, and whether the business will be a sole proprietorship, partnership, corporation, etc. To begin setting up your business, choose one of the following:

Nearly every small business owner will need the assistance of an accountant, attorney, banker, and insurance agent at one time or another. Some also hire a management or marketing consultant.

A business plan is a written document that defines the goals of your business and describes the means you will use to attain those goals. Every small business owner should prepare one, though in reality many do not. Although creating a business plan will take a lot of time, effort, and energy, it'll be well worth the trouble.

State and local government assistance varies from location to location. Most states and local governments will have some type of an economic development program. These programs will range from providing economic information to giving low interest loans and forgivable grants.

Once you've decided that you have what it takes to start a business of your own, determined the kind of business you want, and evaluated your chances of success, you have to begin setting it up. To get started, consider the following:

According to the U.S. Small Business Association, good sources for information and advice on exporting are:

Here's a look at some of the information you can get from federal government research tools. In this case study, presume the new business is a submarine sandwich restaurant in Cedar Rapids, Iowa. The order of publications used for this case study is the same order as listed above.

The federal government's main conduit to help the new business person is the Small Business Administration (SBA).

SCORE, the Service Corps of Retired Executives, is a national organization sponsored by the U.S. Small Business Administration (SBA). This organization has over 13,000 member volunteers. SCORE provides free counseling to new and existing small businesses. SCORE provides workshops for new business, and these workshops provide a general overview of what it takes to start a new business.

Customized economic research covers a wide range of categories. The research can range from sitting in your car and watching people walk by a specific location to hiring a professional research firm to do your market research and analysis for you. Don't overdo your market research; see market research on a budget for more information.

In making a legal assessment of your business idea, you need to determine to what extent the operation of your business might expose you to legal liability. Talk to your lawyer and ask him or her about the risks.

Where can you go to find out more information about the costs of starting a particular type business? The following is a list of our favorite sources:

Finding the money needed to start a new business is almost always one of the most difficult hurdles new owners face. At this point in the process of analyzing your business idea, you should have examined both the costs of starting a business and your market with the result that you know how much it should cost and how much you should be able to earn. Assuming that the startup costs are more than you have on hand and more than you'll be able to earn right out of the gate, the next step is to figure out whether you can raise the difference.

Operating a small business from your home is a nice, cost-saving alternative for some people. If a home office makes sense for you, this option will reduce the risk and cost of starting a new business in many cases.

How much money are you willing to lose in your new business venture? You should set a maximum dollar amount that you're willing to commit.

For those who are unsure about whether they can make a go of a new business, starting out on a part-time basis is a viable alternative. A part-time business will reduce your new financial risk significantly while you gain the experience you need. And, of course, if the business fails, you can fall back on your full-time job.

If you're uncertain about your ability to run a small business, one good way to offset that concern is to hire someone to run the business for you. This accomplishes two purposes. First, the manager can bring instant experience to the new business. Second, if you have another job, you'll be able to continue with your current employment, and you'll have something to fall back on if your new business fails.

A good way to reduce your risk of failure is to purchase a franchise because franchises typically have a higher success rate than other types of small businesses. Conventional wisdom holds that franchises have a failure rate of about 5 percent, compared to the 50 percent failure rate of independent entrepreneurs.

Most businesses, especially new businesses, have cash peaks and valleys. As your business matures and you learn the ropes of operating your business, hopefully the peaks will greatly outnumber the valleys! However, in the first few months and years, that's unlikely to be the case.