There are numerous sorts of legal business structures, but the commonest are the only proprietorship, limited liability Firm, partnership ( general and limited ) and the firms. Their private assets can't be sold off to cater for any losses or liabilities in the company. Re transferability, the only owner can transfer or relinquish his business to anybody he would like to. As for the other legal business structures, one must give a notice when they have to transfer possession and this has got to be accepted by other shareholders. Why? You aren't an owner [called a member]. The guidelines for the way the LLC will be managed also must be set out in an Operating Agreement, a matter to be bartered between the numerous entities. Issues like voting rights, the privilege to bind the LLC to agreements, tax filing issues and so on must all get handled. If there isn't any documentation building that you've got the authority to bind the LLC to a contract, you better not be signing them in the name of the business.