Review the various options and select two business structures to compare and contrast. Review the different options and choose two business structures to compare and contrast.
Combine different business structures
Designations like S corp and nonprofit aren't strictly business structures – they can also be understood as a tax status. It's possible for an LLC to be taxed as a C corp, S corp, or a nonprofit. These arrangements are far less common and can be more
difficult to setup. If you're considering one of these non-standard structures, you should speak with a business counselor or an attorney to help you decide.
Compare the general traits of these business structures, but remember that ownership rules, liability, taxes, and filing requirements for each business structure can vary by state.
|Sole proprietorship||One person||Unlimited personal liability||Personal tax only|
|Partnerships||Two or more people||Unlimited personal liability unless structured as a limited partnership||
Self-employment tax (except for limited partners)
|Limited liability company (LLC)||One or more people||Owners are not personally liable||
Personal tax or corporate tax
|Corporation - C corp||One or more people||Owners are not personally liable||Corporate tax|
|Corporation - S corp||One or more people, but no more than 100, and all must be U.S. citizens||Owners are not personally liable||Personal tax|
|Corporation - B corp||One or more people||Owners are not personally liable||Corporate tax|
|Corporation - Nonprofit||One or more people||Owners are not personally liable||Tax-exempt, but corporate profits can't be distributed|