The legal form of the organization in the business plan is used to decide how the organization will operate, how roles will be organized and assigned and how. If you are starting a new business, you need to decide which legal form of ownership is best for you and your business. Do you want to become a business owner? When starting a business, you can choose from different types of business ownership structures. Each has its own forms of business ownership. The most common forms of business ownership are sole proprietorship, partnership, limited liability company, limited liability company LLC, series LLC, and corporations, which can be taxed. This document can clarify these roles for yourself, as well as for investors and employees. The section on organization and management should explain the chain of command, roles and responsibilities. It should also explain a little about what makes each person uniquely suited to take charge of their line of business. Partnership: A partnership is a formal agreement in which two or more parties cooperate to manage and operate a business. Various partnership modalities are possible: all partners can share. An operating agreement, also known in some states as an LLC limited liability company agreement, is a contract that describes how a business plans to operate. Think of it as a legal business plan. Here are common forms of business ownership, including their benefits and limitations. 1. Sole proprietorship. Perfect property for small, low risk businesses. A sole proprietorship is the simplest form of business owned by an individual. Many people use this legal structure because it is easier and less expensive to get started than others.