Choosing the Best Corporation Type: Side-by-Side Comparison
Business Types Comparison Chart
| Corporation Types Comparison |
C Corporation |
Subchapter S (S-Corporation) |
Limited Liability Company |
General Partnership |
Sole Proprietor |
| Owners have limited liability for business debts and obligations |
X |
X |
X |
|
|
| Created by a state-level registration that usually protects the company name |
X |
X |
X |
|
|
| Business duration can be indefinite (forever) |
X |
X |
X |
|
|
| Allows unlimited number of owners |
X |
|
X |
X |
|
| Owners need not be U.S. citizens or residents |
X |
|
X |
X |
X |
| Allows individual or corporate ownership |
X |
|
X |
|
|
| Can issue & sell shares of stock to investors |
X |
X |
|
|
|
| Owners report business profits and losses on personal tax returns |
|
X |
X |
X |
X |
| Allows owners to split profits and losses with the business to lower tax rate |
X |
|
|
|
|
| Allowed to distribute special allocations (transfer of $), under certain guidelines |
|
|
X |
X |
|
| Not required to hold annual meetings or record meeting minutes |
|
|
X |
X |
X |
Where should you go to incorporate?
In my own experience, Florida is a great state to incorporate in. They have a great tax situation for companies there. In 1998 I started an incorporation company there called, Florida-Incorporation.com. I sold it to a friend, Dean Harrington, and he’s kept it going for over a decade now. Incorporate with Dean – he has my highest recommendation.
Incorporate in Florida with Dean now (or just check out his sites – 2 sites – same owner)
Start a Florida Business - a newer site we just completed, same information, same owner – just more up-to-date. Use either Florida site mentioned here to incorporate.
