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CHOOSE THE ENTITY TYPE THAT FITS YOUR BUSINESS
Limited Liability
Company (LLC)
An LLC is great for seasoned entrepreneurs and new business owners alike.
Corporation
(C-Corp | S-Corp)
If you’re looking to scale your business quickly and issue shares to investors, choose a Corporation.
Professional
Company
Start your Professional Company today to ensure that your practice is protected and compliant.
Need help deciding which entity is right for you?
We Can Help You Decide Which Entity is Best
Enter your information below and an attorney will contact you to help determine which entity type best fits your business needs.
Step 1: Answer our questions.
Step 2: We form your business.
Step 3: Run your company!
Save Time and Money
Our attorneys will be saving you time and money by forming your business the right way.
Guaranteed Service
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Fastest Turnaround Time
The forming of your new business starts immediately. Our services are among the fastest in the industry.
Types of Business Entities
FIND THE ENTITY THAT IS RIGHT FOR YOU
Business Type | Features | Protections & Taxes | Negatives |
|---|---|---|---|
LLC | Allows the most flexibility in terms of management and structure Can have unlimited members Can be owned by another LLC, corporation, or any other legal entity | Protects personal assets and liability from lawsuits Offers pass through taxation for business owners Requires separate tax filings | Will require regular fees and forms to maintain Can’t go public Not recognized internationally |
S-Corp | Allows for issue of shares Shareholders must be US residents Owners only get common stock | Protects personal assets and liability from lawsuits Offers pass through taxation for business owners Requires separate tax filings | Will require regular fees and forms to maintain Requires a firm structure, with a board of directors Must keep records and hold annual meetings |
C-Corp | Allows for issue of shares Owners can get preferred stock Best option to eventually go public | Protects personal assets and liability from lawsuits Taxed at the corporate level and at the personal level Requires separate tax filings | Will require regular fees and forms to maintain Requires a firm structure, with a board of directors Must keep records and hold annual meetings |
Sole Proprietorship | Doesn’t require any setup or fees Can only have one owner May still require licenses or forms, depending on state regulations | There is no personal liability protection Only taxed on a personal level Can complete taxes without a separate filing | No limited liability protection No company structure or organizing documents Limited business rights |
Features
Allows the most flexibility in terms of management and structure
Can have unlimited members
Can be owned by another LLC, corporation, or any other legal entity
Protections & Taxes
Protects personal assets and liability from lawsuits
Offers pass through taxation for business owners
Requires separate tax filings
Negatives
Will require regular fees and forms to maintain
Can’t go public
Not recognized internationally
Features
Allows for issue of shares
Shareholders must be US residents
Owners only get common stock
Protections & Taxes
Protects personal assets and liability from lawsuits
Offers pass through taxation for business owners
Requires separate tax filings
Negatives
Will require regular fees and forms to maintain
Requires a firm structure, with a board of directors
Must keep records and hold annual meetings
Features
Allows for issue of shares
Owners can get preferred stock
Best option to eventually go public
Protections & Taxes
Protects personal assets and liability from lawsuits
Taxed at the corporate level and at the personal level
Requires separate tax filings
Negatives
Will require regular fees and forms to maintain
Requires a firm structure, with a board of directors
Must keep records and hold annual meetings
Features
Doesn’t require any setup or fees
Can only have one owner
May still require licenses or forms, depending on state regulations
Protections & Taxes
There is no personal liability protection
Only taxed on a personal level
Can complete taxes without a separate filing
Negatives
No limited liability protection
No company structure or organizing documents
Limited business rights
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Frequently Asked Questions
If you’re on the fence about what type of entity is best for you and your business, look through these frequently asked questions. If you still want guidance, you can schedule a free strategy session with one of our attorneys.
An LLC, or a limited liability company, is a business entity that shields owners and shareholders from some personal liabilities including debts, unlike a sole proprietorship or professional company. LLCs, however, are not corporations and are therefore not taxed directly. Instead, shareholders are taxed on their profits from the LLC.
Corporations create several unique benefits in that corporations are a separate entity from their shareholders. This offers protection for the shareholders from all debts or lawsuits that the corporation may encounter, so long as the corporation conforms to their legal requirements. A corporation can only be legally sought after for its assets, not the shareholders’.
C-Corporations and S-Corporations vary in several ways regarding liabilities and taxation. An S-Corporation isn’t taxed directly on its net profit, but shareholders must pay for their income from the S-Corporation. A C-Corporation is taxed directly on its income and its shareholders are taxed on their profits from the C-Corporation. The advantage of a C-Corporation is it provides greater liability protection and tax benefits for shareholders.
Permits and licenses are conditional based on which city, county, or state the business operates in. Having an attorney is vital for your business to remain legally compliant.
