Business Comparison Chart
Before you begin the incorporation process, you will need to choose a business structure. Mr. Raines and Thomas E. Raines, PC can help you form a new corporation or Limited Liability Company (LLC). There are numerous options when it comes to deciding whether to incorporate, form and LLC or a partnership or act as a sole proprietor; take your time and let Thomas E. Raines, PC’s Business Comparison Chart help you through the process. Please review our chart below for the advantages of forming a C Corporation, Subchapter S Corporation, or LLC.
| C Corp | S Corp | LLC | General Partnership | Sole Proprietor | |
| Owners have limited liability for business debts and obligations | ✖ | ✖ | ✖ | ||
| Created by a state-level registration that usually protects the company name | ✖ | ✖ | ✖ | ||
| Business duration can be perpetual | ✖ | ✖ | ✖ | ||
| May have an unlimited number of owners | ✖ | ✖ | ✖ | ||
| Owners need not be U.S. citizens or residents | ✖ | ✖ | ✖ | ✖ | |
| May be owned by another business, rather than individuals | ✖ | ✖ | |||
| May issue shares of stock to attract investors | ✖ | ✖ | |||
| Owners can report business profit and loss on their personal tax returns | ✖ | ✖ | ✖ | ✖ | |
| Owners can split profit and loss with the business for a lower overall tax rate | ✖✖ | ||||
| Permitted to distribute special allocations, under certain guidelines | ✖ | ✖ | |||
| Not required to hold annual meetings or record meeting minutes | ✖ | ✖ | ✖ |
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