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.

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COMPARISON CHART FOR DIFFERENT BUSINESS ENTITIES

 

Characteristics

C Corporations

S Corporations

Sole Proprietorship

General Partnership

Limited Partnership

LLC

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

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

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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