Company Formation At-A-Glance

CHARACTERISTIC

LLC

Sole Proprietorship

General Partnership

Limited Partnership

C Corp

S Corp

Limited Liability for ALL owners

Yes

No

No

No

Yes

Yes

Owners can participate in management without losing liability protection

Yes

N/A

N/A

No

Yes

Yes

Easy to form with no need to keep extensive records

Yes

Yes

Yes

No

No

No

Number of owners

1 or more*

1

1 or more

1-35

1 or more

1-75

Restrictions on ownership

No

No

No

Yes

No

Yes

Double taxation

No

No

No

No

Yes

No

Able to deduct business losses on individual return

Yes

Yes

Yes

Yes

No

Yes

Able to add any number of additional investors including other entities

Yes

N/A

Yes

No

Yes

No

Flexible Distribution of Profits and Losses

Yes

N/A

Yes

Yes

No

No