What's Best for My Business
Personal Asset Protection
Generally ,the owners of the business are not personally responsible for the claims of the creditors of the business. The owners financial risk is limited to their investment in the business. However, this protection is not absolute. This does not apply to certain types of debt for example, payroll tax trust funds, sales tax, and professional malpractice.
yes
yes
yes
yes
Only the "Limited Partners". The "General Partners" are personaly resposible for the business debt.
yes
Avoids Double Taxation
Distributions of profits can be subjected to double taxation. C-Corporations are criticized for this. However this can be avoided by electing S-corporation status or by conducting business through one of the other entities available.
 No: However, this can be avoided by electing S-corp. status or by conducting business through one of the other entities available. Distributions of profits can be subjected to double taxation. C-corporations are criticized for this. However a professional corporation can avoid this by electing S-corp. status.
Yes
Single member LLC's are typically taxed like a sole proprietorship thereby avoiding double taxation. Multi member LLC's are typically taxed like a partnership which also avoids double taxation.
yes
yes
Type Of Ownership
Different entities have different types of owners.
 Stockholders / Shareholders Stockholders / Shareholders Stockholders / Shareholders Members Partners Partners
Number Of Stockholder / Members / Partners
Different types of entities have restrictions as to the number of stockholders / owners. For example, the IRS limits S-corporations to 100 shareholders.
 Unlimited Unlimited, unless the PC has elected S-corporation status. S-corporations are limited to 100 shareholders. No more than 100 At least one member At least 2 partners At least 2 partners
Minutes And By Laws
Corporations are required to maintain minutes and bylaws on a regular basis
Yes
Yes
Yes
Taxation
Taxed separately subject to the corporate rates.
Taxed separately subject to the highest corporate rates. This can be avoided by electing S-Corp status.
Income and losses are passed through to the shareholders. Generally does not pay corporate taxes. Pass through income is not subject to self employment tax.
Generally income and losses pass through to its members and the tax is paid at the individual level. Can elect to be taxed like a C or S Corporation.
Generally income and losses pass through to the partners and the tax is paid at the individual level.
Generally income and losses pass through to the partners and the tax is paid at the individual level.