In any business involving two or more people, the basic options are a partnership or a corporation. A corporation is often the most beneficial. As a shareholder in a corporation, you often are not personally liable for most of the debts, obligations or acts of the corporation. On the other hand, you will be subject to more stringent and costly reporting requirements. You can also issue shares in a corporation, and take advantage of various measures to reduce your tax burden, by splitting ownership with a spouse and/or children.