| Description |
Sole Proprietorship
 |
LLC |
S-Corp |
C-Corp |
| What Is It? |
Individual |
Legal Entity |
Legal Entity |
Legal Entity |
| Where Formed / Authorized |
Anywhere Individual Locates |
State |
State |
State |
| Life of Entity |
Lifetime of Person |
Set Length |
Forever |
Forever |
| Who is Liable |
Individual
(except where negotiated) |
Usually Just the Entity |
Usually Just the Entity |
Usually Just the Entity |
| Tiers of Control |
Individual |
Members of LLC by Consensus |
Same as C – Smaller Scale |
Shareholders
Board of Directors
Executives
Employees |
Legal Mandates
(Meetings – Filings) |
None |
Fewer than Corps |
Board Meetings
Annual Meetings
Annual Filings
Other |
Board Meetings
Annual Meetings
Annual Filings
Other |
| Taxation |
Individual - No Double Tax |
Individual Rates - Passes through
to members with proper structure
No Double Tax |
Individual Rates - Passes through
to members with proper structure
No Double Tax |
Corporation is taxed and Distributions
/ Dividends / Gains are taxed to individuals Double Tax |
| Cost to Establish |
None |
State Filing Fees
Legal/FAC Fees |
State Filing Fees
Legal/FAC Fees |
State Filing Fees
Legal/FAC Fees |
| Capital Structure |
None |
Transferable Interests vs.
Shares of Stock
% Ownership (may be transferable) |
Shareholders Free to Transfer |
Virtually Unlimited Number
of Shareholders/Shares |
