The Thomsons set up their partnership as a limited liability company, which is often the best way to hold real property.

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If you decide to set up a for-profit entity, you have five basic choices: a sole proprietorship, a partnership, a limited liability company or a corporation--either an S corporation or a C corporation.

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How you can legally go about removing a co-founder may depend on whether your business is a partnership, limited liability company or corporation, as well as the state in which you set it up, according to Mr. Mandel.

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