Business Structures
Having a hard time deciding what structure is best for you?
Compare all the options below. No matter what you choose, we can DO it.
Professional Corporation Shareholders (owners) are only liable for their own malpractice acts.Unless the professional corporation has elected S Corp status it will be taxed like a General for Profit Corporation (double taxation). Many corporate formalities: holding meetings, recording minutes, issuing stock & state reporting.File with state office. Perpetual.
| Entity Structure | Personal Liability | Taxation | Maintenance | Formation | Duration |
|---|---|---|---|---|---|
| General for Profit Corporation Order Now | Shareholders (owners) are not liable for the debts of the company. | Double taxation. Taxed at the entity level & dividends distributed to owners are taxed as well. | Many corporate formalities: holding meetings, recording minutes, issuing stock & state reporting. | File with state office. | Perpetual. |
| Limited Liability Company (LLC) | Members (owners) are not liable for the debts of the company. | Pass through taxation. Owners report on their individual tax return. | Less formalities then a corporation, minimal state reporting. | File with state office. | Perpetual. |
| S Corporation | Shareholders (owners) are not liable for the debts of the company. | Profits & losses of the business pass though the corporation to the shareholders to report with their individual tax return. | Many corporate formalities: holding meetings, recording minutes, issuing stock & state reporting. | File with state office. | Perpetual. |
| Nonprofit Corporation | Tax exempt entities. | File with state office. | Perpetual. | ||
| Professional Corporation | Shareholders (owners) are only liable for their own malpractice acts. | Unless the professional corporation has elected S Corp status it will be taxed like a General for Profit Corporation (double taxation). | Many corporate formalities: holding meetings, recording minutes, issuing stock & state reporting. | File with state office. | Perpetual. |
| Sole Proprietorship | Owner has unlimited liability. | Owner reports profits & losses on his/her individual tax return. | Minimal to any annual requirements. | No formation required. May need a DBA. | Varies. |
| General Partnership | Partners have unlimited liability | The owners report the profits & losses on their individual tax returns. | Minimal to any annual requirements. | Partnership agreement. May also need a DBA. | Upon death of a partner. |