Choosing the right entity allows you to reduce liability exposure, minimize taxes, and ensure that the business can be financed and run efficiently.
Here are some of the most common types of businesses:
|Business Type ||Separation ||Ownership ||Taxation* |
|Corporations (C Corp) ||Offers the most separation between personal/business ||Ownership is transferable ||Taxed at the entity level |
|Subchapter S Corporations (S Corp) ||A separate legal entity created by a state filing ||No more than 100 shareholders ||Taxed at federal level similar to partnership and LLC |
|Sole Proprietorships ||Business and owner are legally the same ||Single owner ||Business is not a taxable entity |
|Limited Liability Company (LLC) ||Limited liability protection for members' personal assets ||Owned by one or more members but flexibility in management ||"Pass-through" tax entity. Income/loss reported by owners |
|Partnerships ||No separation from owner(s) ||Two or more people ||Not taxable entity under federal law |
|Not-for-Profit ||Learn more about Not-for-Profits || || |
To speak with a professional about what type of business suits your needs best, get in-touch with one of our Commercial Services Specialists to set up a consultation.