Entity Business Type Choices

Related Topics

Entity Comparison Table

	Sole Proprietor	General Partnership	Limited Liability Company	S Corporation	C Corporation
Liability Protection	None. Owner/proprietor has unlimited liability.	None. Partners have unlimited liability.	Yes. Owners/Members generally not personally liable for the debts of the business.	Yes Owners/Shareholders are not personally liable for the debts of the corporation.	Yes. Owners/Shareholders are not personally liable for the debts of the corporation.
Management	Owner/proprietor is responsible.	Generally partners have an equal share of responsibility.	Owners/Members can manage or elect to have designated managers.	The corporation is managed by the board of directors who are elected by the shareholders.	The corporation is managed by the board of directors who are elected by the shareholders.
Formation & Operation	Few legal requirements	Few legal requirements.	Some legal requirements, however, less formal than corporations.	Must maintain corporate formalities such as board of directors and shareholder meetings/resolutions, annual meetings and annual reporting requirements.	Must maintain corporate formalities such as board of directors and shareholder meetings/resolutions, annual meetings and annual reporting requirements.
Duration	Life of sole proprietor.	Dissolved by death of partner.	Generally limited to a fixed amount of time, however, more states now allow perpetual existence.	Perpetual	Perpetual
Taxation	Not a separate taxable entity. Sole proprietor pays all taxes.	Partners pay tax on their share of the income and can deduct losses against other sources of income.	Generally there is no tax at the LLC level. Income/loss is passed through to members of the LLC according to the Operating Agreement. LLC's can elect to be taxed as a C Corporation.	No tax at corporate level. Income/loss is passed through to the shareholders according to their percentage of ownership.	Corporation must pay tax on all income and is subject to certain restrictions on retained earnings. Shareholders then pay income tax on the income distributed to them resulting in "double taxation".
Pass Through Taxation	Yes	Yes	Yes	Yes	No
Double Taxation	No	No	No, however, LLC's can elect to be taxed as a C Corporation.	No	Yes
Transferability of Ownership	No	No	Generally yes, subject to approval from other members.	Yes, subject to consent and restrictions on Shareholders.	Yes. Generally there are no restrictions on transfers.

Solutions are dependent upon facts & circumstances, law and the objectives. These elements vary from one time to another, from one circumstance to another and from person or entity to another

My Name

Engagement Status Letter ~ WARNING!

WARNINGS ABOUT THIS SITE'S CONTENT~ Terms & Conditions

THE FOLLOWING APPLIES TO ALL PAGES, TEXT, IMAGES AND CONTENT OF THIS SITE

This entire site is for educational or informational purposes only. You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional. The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas. At times, information is taken from other sources and is believe to be accurate, but no verification or confirmation is performed. Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply. In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida. Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site.

Material provided herein is based upon the most recently available information and is subject to change. It is not intended to be complete and should not be used to make any type of decisions. All should consult a qualified tax adviser and other professional(s) for more complete information.

You have not engaged Bob Parrish CPA PC, Bob Parrish CPA, pro1040, Consulting on line, any related parties, or the ISP to perform any services for you or offer you advice. This entire site is for educational or informational purposes only. The materials are not opinions, advise, legal advice on any matter and have not been tailored to specific jurisdictions, individuals, other entities, or circumstances. You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional. You must update and validate this information yourself with your own research, experience and the advice of a competent professional adviser in your jurisdiction. The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas. At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed. Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply. In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida. The cost of arbitration to the complainant is restricted to the cost through a court having jurisdiction in the matter including if allowed by law the cost of legal fees. Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. ....... Sunday, March 04, 2007 08:44 AM

All funds, bonds, partnerships, variable insurance products and other securities are not FDIC insured, not bank insured, and not guaranteed by any party, and are offered by prospectus only. You should consult your financial advisor for a prospectus before investing. Please read the prospectus, which contains more complete information on risk considerations, management fees, sales charges, and other expenses, carefully before you invest. The value of the investment does change and the value will be more or less than your investment. Historical performance is not indicative of futures results and future results cannot be predicted or guaranteed.

Bob Parrish CPA:

License Jurisdictions —
CPA: FL, TX

Email to pro1040@home.com

Privacy Statement

Or If you want to use your own email editor click here

Sole
Proprietor

General
Partnership

Limited Liability Company

S Corporation

C Corporation

Liability
Protection

Management

Formation & Operation

Duration

Taxation

Pass Through Taxation

Double Taxation

Transferability
of Ownership

Sole Proprietor

General Partnership