Business Structure Comparisons List

Here’s a simple business structure comparison list. Before incorporating understanding the differences in the business structures are important. Incorporating is a big deal and choosing the right entity is just as important. There are certain factors you should take into consideration when deciding the type of entity you should use. Below are eleven key factors to consider when choosing a business structure, see what structures have what you are seeking.

1. Owners have limited liability for business debts and obligations.

C Corp | S Corp | LLC


2. Created by a state-level registration that usually protects the company name.

C Corp | S Corp | LLC 


3. Business Duration can be perpetual.

C Corp | S Corp | LLC


4. May have an unlimited number of owners.

C Corp |  LLC | General Partnership 


5. Owners do not need to be U.S. citizens or residents.

C Corp |  LLC | General Partnership | Sole Proprietor


6. Maybe owned by another business, rather than individuals.

C Corp |  LLC


7. May issue shares of stock to attract investors.

C Corp | S Corp


8. Owners can report business profits and losses on their personal tax returns.

S Corp | LLC | General Partnership | Sole Proprietor


9. Owners can split profit and loss with the business for a lowers overall tax rate.

C Corp


10. May distribute special allocations, under certain guidelines.

LLC | General Partnership 


11. Not required to hold annual meetings or record meeting minutes.

LLC | General Partnership | Sole Proprietor


You can contact us and we’ll help you to incorporate your business.


About the Author

Jacquéline Edwards is a Business Manager with over twenty years of experience for Business Pipeline, Inc, a business management firm designed to assist business owners with bookkeeping and business management needs.