| Entity Type |
Description |
Pros |
Cons |
Other
Notes |
| C-Corporation |
The
traditional "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. |
| LLC | Limited 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." |
