How Do You Know What Kind of Business Entity You Have?

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If you are operating an eBay business by yourself and have not taken the steps to form a corporation or an LLC, then you are considered to have a sole proprietorship. If you are operating an eBay business with other owners and you and your fellow owners have not taken steps to form a corporation or an LLC, then you are considered to have a general partnership. These classifications will determine how the business will be treated tax-wise, and whether liabilities that arise from the business are limited to business assets or extend to your personal assets.

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