One of the first questions you're likely to face when you decide to incorporate is where to locate your corporation.
Limited partnerships are typically used for real estate investing or in situations where a business is looking to finance expansion.
A limited liability company (LLC) has the liability protection of a corporation but the tax status of a partnership.
If you have business partners, you have the option of forming a partnership instead of incorporating.
While incorporation requires more paperwork and expense than sole proprietorship, it does give you one critical benefit - protection from liability.
The main difference between a C Corporation and other business structures is that a C Corporation files and pays corporate income taxes directly.
If you have chosen to organize your company as a corporation, you are legally required to have a board of directors.
The primary benefit of being a non-profit (or not-for-profit) corporation is that you are exempt from paying income taxes.
Sole proprietorship is the quickest and easiest business structure to adopt. If you don't incorporate and don't have a partner, you are automatically a sole proprietor.
S Corporation status gives you the liability protection of a corporation, and allows you to pay taxes on the same basis as a sole proprietor or partnership, that means you pay tax at the personal rate and your profits are your salary.
Groups of certain professionals can form corporations knows as professional corporations or professional service corporations.