Compare Business Types


Determining what kind of business structure is right for your needs can often be confusing. This chart contains information about some of the key differences and can help you understand the benefits of each business type.

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    Liability Protection
    Limited liability protection
    Limits your personal liability to just what you've invested in your company
     
     
     
     
     
     
     
     

    Management & Operations
    Owner manages the business
     
     
     
     
     
     
     
     

    Easy to add or change owners
     
     
     
     
     
     
     
     

    Taxes
    Pass-through taxation
    The company does not pay tax on its profits, but instead, profits and losses are "passed through" to the owners, who must pay taxes on their proportionate share of the company's income
     
     
     
     
     
     
     
     

    Double taxation
    The company's profits are taxed at two levels. First, the business pays tax on its profits. Second, after profits are distributed to the owners, the owners pay taxes on the income.
     
     
     
     
     
     
     
     

    Filings & Formalities
    State filings and fees
     
     
     
     
     
     
     
     

    Ongoing state filings
     
     
     
     
     
     
     
     

    Corporate formalities
     
     
     
     
     
     
     
     

    Additional business costs
    Potential business costs to consider
     
     
     
     
     
     
     
     

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