While the entity of choice today is a limited liability company, there are situations where a corporation may be more suited to your needs. A corporation is controlled by its officers and board of directors, who may not be the shareholders.
The limited liability company has become a powerful tool for accomplishing many asset protection and estate planning goals. It is the most versatile and convenient strategy for owing dangerous assets, such as rental property or a business. It also provides an excellent level of financial privacy. Unlike a corporation, a limited liability company does not pay franchise tax.
The limited partnership consists of general partners and limited partners. The limited partnership provides centralized management of assets. Assets held in the limited partnership are effectively shielded from potential claims (unrelated to the limited partnership) because the limited partnership owns the assets.