When starting a business one should think about liability ,in a sole proprietorship only one person is responsible for all company debts and only one person will be liable for unpaid debts. In Partnership ,if both partners are out of money, then they are responsible for this debt .Forming a S corporation is a good way to avoid personal liability. I would prefer s corporation because this corporation distributes profits to the shareholders then shareholder pay taxes on this distribution. S corporation gives legal protection of corporation and one will pay individual without double taxation. There is no federal income tax levied at a corporate level. S corporation is great for business that does not have sufficient starting amount and will make enough money with less efforts. Only disadvantage is there are strict rules for the numbers ,types of shareholders and types of shares for qualify as a S corporation