There are several vehicles you can use to start a business. One way is to is to set up a limited partnership, corporation or limited liability company. For real estate purposes, most people agree that a limited liability companies gives its organizers the most flexibility in terms of structure and for income tax purposes. An LLC shields its members from claims from creditors and litigation matters. The LLC also permits the tax benefits of the LLC to flow directly to its members. Learn more on this page about when you should set up an LLC and what is involved.