LLC

Limited Liability Corporation (LLC)

• ·Less requirements to start one
• ·Easy allocation of profits and losses
• Unlimited number or types of owners

C Corporation

• The most common business entity type
• Better for bigger business
• Good to trade shares
• Attract potential investors

S Corporation

• Initially form as a C Corporation, elected as a subsection S.
• Federal income tax is not calculated at entity level
• Minimize payroll and self-employment taxes
• Limited liability protection (separating personal assets form business assets)

Nonforprofit

• Public benefit
• Offers protection against potential liability
• Nonprofits are exempt from federal, sales, and property taxes
• Profit cannot be used for director’s but for the entity’s purposes