| |
S
Corps |
C
Corps |
LLCs |
LPs |
LLPs |
Nonprofit
Corps |
Professional
Corps |
Close
Corps |
| Limited
Liability Protection (owners' personal assets protected from debts,
obligations and liabilities of business) |
X |
X |
X |
(for
Limited Partners, but not for General Partner) |
X |
X |
X |
X |
| Double
Tax Status (business profits taxed at corporate level, then again at
personal level when distributed to owners) |
|
X |
(if
desired) |
|
|
N/A |
(if
desired) |
(if
desired) |
| Pass
Through Tax Status (business profits taxed only when distributed to
owners) |
X |
|
X |
X |
X |
N/A |
(if
desired) |
(if
desired) |
| Generally
Requires Annual Reports to Owners |
|
X |
|
|
|
|
|
|
| Generally
Requires Annual Meetings of Owners |
X |
X |
|
|
|
X |
X |
|
| Requires
Annual Meetings of Directors |
X |
X |
|
|
|
X |
X |
|
| Allows
for Fringe Benefits (untaxed medical and retirements benefits to
employees) |
|
X |
|
|
|
|
(if
C Corp status elected) |
|
| Allows
Owners to Take Tax Benefits of Business Losses |
X |
|
X |
X |
X |
(if
S Corp status elected) |
(if
S Corp status elected) |
(if
S Corp status elected) |
| Allows
for Disproportionate Division of Profits and Losses Among Owners |
|
|
X |
X |
|
|
|
|
| Allows
for Preferred Stock |
|
X |
|
|
|
|
|
|
| Allows
for Later Investment Offerings |
X |
X |
X |
X |
X |
X |
X
|
|
Limitation
on number of owners
(*number differs depending on state) |
limited
to 75 |
none |
none |
none |
none |
none |
none |
limited
to
30-50* |
Limitation
on type of owners
(*must
have relevant professional designation) |
|
|
|
|
X* |
|
X*
|
|
| Corporate
Shield Supported by Strong Legal History |
X |
X |
X
(although not as much as corps) |
X |
X |
X |
X |
(only
in some states) |
