What are the main characteristics of a particular business entity?

There are numerous characteristics that make a business entity unique. The major characteristics of a business entity are as follows:

Creation & Maintenance – The effort associated with forming and maintaining the entity;

Continuity – The continuity or stability of the organization upon given occurrences;

Ownership & Control – The ownership rights and control of those involved with the business;

Personal Liability – The potential for the personal liability of those involved with the business;

Compensation – The compensation and division of profits among business owners; and

Taxation – The taxation of the organization’s earnings and its distributions of profits to the owners.

This list is certainly not exhaustive; however, these primary characteristics provide a great deal of necessary insight for understanding and choosing a business entity.