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MOST COMMON
Limited Liability Company (LLC)
Starts at $0 + state filing fees
The most flexible way to structure your business and protect personal assets.
Doing Business As (DBA)
Starts at $99 + state filing fees
A way to use a business name that sidesteps the upkeep of LLCs or corporations.
Corporation (S corp or C corp)
Starts at $149 + state filing fees
A more complex structure to issue shares, go public, or go global.
All business types at a glance
Limited Liability Company (LLC)
Going solo or teaming up? Make sure you're not personally on the hook for business liabilities with an LLC.
How it’s unique
Best for max flexibility in how you manage and run your business; board of directors not required
Unlimited owners (aka "members") allowed
Protections & taxation
You're not personally on the hook for business liabilities
Taxed once or twice; you're free to choose which can help minimize taxes
Drawbacks to consider
Ongoing filings and fees to stay in compliance
LLCs can't go public
Not recognized globally; you may be taxed as a corporation in other countries
Ready to get your LLC?
Starts at $0 + state filing fees
Both protect owners so they're not personally on the hook for business liabilities or debts. But, key differences include how they're owned (LLCs have one or more individual owners and corporations have shareholders) and maintained (corporations generally have more formal record-keeping and reporting requirements). Even though LLCs are considered easier to start and maintain, investors tend to prefer corporations.
The way you're taxed. C corporation income is taxed twice—the business pays taxes on its net income, and then the shareholders also pay taxes on the profits they receive. With S corporation income, only the shareholders pay taxes on profits received. The Secretary of State requires articles of incorporation to form a corporation.
Personal liability protection. An LLC protects owners from being personally on the hook for business liabilities or debts. A sole proprietorship doesn't.
LLCs, S corporations, and sole proprietorships are taxed once on profits received. C corporations are taxed twice; the business pays taxes at the corporate level, and shareholders pay taxes on income received.
LLCs and corporations. You don't get personal liability protection with sole proprietorships or DBAs.
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—Luis C., LLC customer
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