There are three main type of a business form from the number of the owner that is established the business. We can choose one of this type if we will start a business, sole proprietary, partnership, and corporation. This article will try to show you the meaning of each type of business, so it will give you clearly explanation about it. First is sole proprietary, this type of business is owned by a single owner. We stand alone to manage this business. Taking this type of business, we must be willing to accept full responsibility of firm performance. Beside that we also need a strong leadership skills, must be well organized, and also can communicate well with the employee. But there is also a benefit by choosing this type of business, that is we do not need to share the profit with the creditors. Next is partnership, it is owned by two or more people. Mainly, this second type is still divided again into two kinds of partnership, the first is general partnership and the second is limited partnership. General partnership means all partners have unlimited liability. While the limited partnership means that the partnership has several rules such as : Some partners have personal liability that is limited to the cash or property they invested in the firm, One or more general partners who actively manage the business, receive a salary, share in profits and losses, have unlimited liability, Personal earnings received from the partnership are subject to personal income taxes. And for the last is corporation. Corporation means a large company. In this type of business state chartered entity that pays taxes and it’s legally distinct from the owner. Every people or group who wants to belong this corporation must adopt corporate charter and file it with the state. Beside that they must also establish by the law. And this corporation the shareholder have limited liability.