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Business Structures Comparison

Comparing the Different Entity Structures

 

 

 

When an entrepreneur is starting a business, there are a lot of things to consider and a lot of decisions. From liability protection to taxation, the type of business structure you choose will make an impact on your future profitability and success. To help with this process, the following business structure chart provides a high-level comparison of the most popular forms of business structure and their attributes.

Comparison Chart of the 7 Most Popular Business Structures

 

Sole Proprietorship

General Partnership

C Corporation

S Corporation

Professional Corporation

Nonprofit Corporation

Limited Liability Company

Formation

No filing required

No filing required

State filing required

State filing required

State filing required

State and federal filings required

State filing required

Limited personal liability

No

No

Yes

Yes

Yes, except for own malpractice

Yes

Yes

Transferability of interest

No

No

Yes

Generally limited

Generally limited

N/A

Yes, often limited

Duration

Until withdrawal or death of the owner

Unlimited

Unlimited

Unlimited

Unlimited

Unlimited

Unlimited

Pass-through taxation

Yes

Yes

No

Yes

No

Tax exempt

Yes, upon election

Ability to raise capital

Not as a separate entity

Yes

Yes

Yes, but shareholder limits

Yes

Yes, through donations and grants

Yes

Limitations on the number of owners

Yes

No

No

Yes

No, but all owners must be part of the same profession

N/A

No

 

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