Help Me Decide

Should I form an LLC or is incorporating a businees the right move for me? Deciding the appropriate structure is a critical step in achieving the most benefits possible from your business filing. We tell you what you need to know to form an LLC and show you the difference between incorporating a business and an LLC formation. Below are two different charts to help you evaluate some key differences between some of the more common used business entities. Read this before you complete your business filing.

 

Feature	C Corporation	S Corporation	Limited Liability Company	General Partnership	Sole Proprietor
Provides owners with limited liability for debts and other business obligations
Company name protected by state level registration
Duration of the business can be perpetual
The number of owners may be unlimited
Owners may reside outside the United States and/or not be U.S. citizens
May be owned by another business
May issue shares of stock
Business profit may be passed through to the individual owners tax returns
The business and it's owners may split overall profit and loss, resulting in lower tax rates
Does not require annual meetings or meeting minutes