Taxation
This has pass-through taxation. The business itself does not give tax return.
What is Sole Proprietorship
Owner of this has individual personal unrestricted liability for any liabilities the business experiences.
What is Sole Proprietorship
It is the easiest and most simple form of doing business.
What is Sole Proprietorship
What is Sole Proprietorship
The owner of this has full unrestricted exposure to the risks and is responsible for all liabilities.
What is Sole Proprietorship
This is tax-reporting, not tax paying. This must file an annual information return with the IRS to report income and losses from business things.
What is General Partnership
All owners have unrestricted and unlimited liability for themselves. With each partner liable for partnership Obligations.
What is General Partnership
This formation is easy to start up and begin, but an attorney for an agreement is usually necessary.
What is General Partnership
Mildly easy to be created. And the money and losses are given to the owners personal tax forms.
What is General Partnership
All partnerships are individually liable for debt within the business and this often leads to management issues and bad partner agreements.
What is General Partnership
This is considered a “pass through entity” for tax purposes.
What is Limited Liability Company
What is Limited Liability Company
To form this, there is a filing fee of $100-$800.
What is Limited Liability Company
The owners are given somewhat limited liability, so the business is responsible for them itself.
What is Limited Liability Company
This often has more taxes than the others within the state.
What is Limited Liability Company
For federal income tax, this is a separate taxpaying form, this files its own tax return.
What is C-Corp
This liability is considered immortal, it is not ended when the shareholder dies. There is limited liability.
What is C-Corp or S-Corp
These are very complex and complicated to be created, there are many more legal obligations than the others.
What is S-corp or C-corp
The shareholders of this have less liability and the formation.
What is S-corp or C-corp
The creation of this is very expensive and risky.
What is S-corp or C-corp
This lets the losses pass through the credit of their shareholders for federal tax.
What is S-corp
This allows shareholders to not lose more money than they invested.
This formation has a large level of governance from board directors.
What is S-corp or C-corp
Favorable formation for investors.
What is S-corp or C-corp
The profit and earnings usually double the entity taxation
What is S-corp or C-corp