Four Common Business Structures
LLC (Limited Liability Company)
The Limited Liability Company (LLC) is now one of the most popular business structures among smaller organizations. While allowing business owners to remain free from a great deal of the formalities imposed on other types of businesses, it still provides limited liability protection for its owners (members). LLCs are also eligible for "pass-through" taxation, which means that the company's income taxes are only reflected on each owner's personal tax return, not at the business level. To learn more about forming an LLC, click the link below.
Start Your BusinessS Corp (S Corporation)
The S Corporation (S Corp) structure is similar to the C Corp, with a few notable differences. The most important of these differences is that S Corps are eligible for special pass through taxation status with the IRS. This allows S Corp owners to avoid double taxation on their business income. S Corps must request pass through taxation status, by filing Form 2553 with IRS after successfully incorporating. To learn more about forming an S Corp, click the link below.
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C Corp (C Corporation)
The C Corporation (C Corp) is what most people think of when they hear the word "corporation". Most large companies are formed under this structure as it offers the most tax related options for business owners. It provides the greatest level of separation between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock. However, the many formal requirements placed on C Corps prevent the structure from being the ideal choice for many smaller organizations. To learn more about forming an C Corp, click the link below.
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