Business Entity Comparison Chart
Use the chart below to see the different advantages to forming a C Corporation, S Corporation or LLC.
|C Corp||S Corp||LLC||General Partnership||Sole Proprietor|
|Owners have limited liability for business debts and obligations|
|Created by a state-level registration that usually protects the company name|
|Business duration can be perpetual|
|May have an unlimited number of owners|
|Owners need not be U.S. citizens or residents|
|May be owned by another business, rather than individuals|
|May issue shares of stock to attract investors|
|Owners can report business profit and loss on their personal tax returns|
|Owners can split profit and loss with the business for a lower overall tax rate|
|Permitted to distribute special allocations, under certain guidelines|
|Not required to hold annual meetings or record meeting minutes|
What are the Entity Types?
- Single Member LLC
- Limited Liability Company (LLC)
- Limited Partnership
- S Corporation
- C Corporation
- B Corporation
- Nonprofit Corporation
- Business Comparison Chart
Entity Formation is Our Specialty
Corporate Direct specializes in entity formation and entity maintenance. Our goal is to protect you at the start and protect you into the future.
Choosing the correct entity is one of the most important decisions you can make. This one decision will dictate how you prepare your taxes, how you keep your books, how much of your business’s income you keep and how much you don’t. It will dictate your profits and losses, the financial security (and safety) of your family, maybe even your health and happiness.
Do not take the decision of which corporate entity you choose lightly. There is no part of your business that will not be affected by it.
For more information please see my book “Run Your Own Corporation.” If you’re looking to form an entity and unsure of what the best choice is for your situation, our incorporating specialists are here to help.For more information or assistance please call 1-800-600-1760.