Comparison Chart for Different Business Entities |
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| This is a chart outlining the key differences between C Corporations, S Corporations, Sole Proprietorships, General Partnerships, Limited Partnerships, and LLCs.
Format: |
COMPARISON CHART FOR DIFFERENT BUSINESS ENTITIES
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Characteristics |
C Corporations |
S Corporations |
Sole Proprietorship |
General Partnership |
Limited Partnership |
LLC |
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Ownership Rules |
Unlimited number of shareholders allowed; no limit on stock classes |
Up to 75 shareholders allowed; only one basic class of stock allowed |
One owner |
Unlimited number of general partners allowed |
Unlimited number of general and limited partners allowed |
Unlimited number of "members" allowed |
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Personal Liability of the Owners |
Generally no personal liability of the shareholders for the obligations of the corporation |
Generally no personal liability of the shareholders for the obligations of the corporation |
Unlimited personal liability for the obligations of the business |
Unlimited personal liability of the general partners for the obligations of the business |
Unlimited personal liability of the general partners for the obligations of the business; limited partners generally have no personal liability |
Generally no personal liability of the members for obligations of the business |
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Tax Treatment |
Corporation taxed on its earnings at the corporate level and the shareholders have a further tax on any dividends distributed ("double taxation") |
Entity generally not taxed as the profits and losses are passed through to the shareholders ("pass-through" taxation) |
Entity not taxed.... |
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Incorporation Forms,
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