When you're considering starting a business, typically the last thing on your mind is what legal entity you should choose for that business - you're much more interested in how you're going to fund the start-up, what your business processes are going to be, and finding paying customers.

Your choice of legal entity can affect you both in the amount of taxes you pay and in the amount of liability that you personally assume.  This is a decision for your attorney, in collaboration with your tax advisor and the business owners.

Take the time to speak with an attorney before you form the business entity - it can save you money in the long run.