Business Type Comparisons




The traditional "corporation."
Entity Type Description Pros Cons Other Notes
C-Corporation Protection from personal liability. Long-standing legal precedents. Easier capital acquisition. Moderately more complicated tax structure. Under current tax laws,double-taxation can be an issue. Many larger-sized organizations choose this type of structure.
S-Corporation The same type of entity as the traditional "C-Corporation," but without the double-taxation. Limitation of personal liability. Elimination of double taxation. Easier capital acquisition. Up to 75 shareholders maximum- fewer in some states. Geared especially for the small business. Most of our customers choose this option.
LLCLimited Liability Company. Newer form of entity organization.Easy separation of members from actual company management. Can prevent double-taxation. Shorter legal history. Fewer case precedents. Many organizations use LLCs to separate the individual assets of a larger business plan. (e.g. real estate holdings)
Non Profit Designed for charitable and mutual benefit organizations. Can register with the IRS as a 501-c3 entity for tax exempt status. Business activity restrictions. Also regulations regarding transfer of corporate assets.
Professional Corp Corporation that is available for service professionals. Enables professional partners (e.g. Medical Doctors, Engineers, etc) to practice and separate personal liability. Restricted to licensed professionals. All members of the corporation must be licensed to practice the professional service. A professional corporation can be structured as a "C-Corporation or an "S-Corporation."