Entities

Business Entity Comparison Chart

The charts on this handout compare and contrast accounting and recordkeeping, fringe benefits, and liabilities of the various business entity types.

HIGHLIGHTS:

  • Sole proprietor.
  • Partnership.
  • S corporation.
  • C corporation.

Business Entity Pros and Cons

This handout gives a listing of pros and cons for the various types of business structures. It also provides examples of the types of businesses that are good fits for each entity type.

HIGHLIGHTS:

  • Sole proprietor.
  • Partnership.
  • S corporation.
  • C corporation.
  • Limited liability companies (LLCs).

Corporation Meeting Requirements

This handout provides guidance on what to do to maintain corporate tax filing status. It lists the requirements of all corporations and provides an outline of how to comply with those requirements.

HIGHLIGHTS:

  • Piercing the corporate veil.
  • General requirements of all corporations.
  • Outline of suggestion for single-member and multiple-member corporations.
  • Waiver of Notice model language.

Limited Liability Companies (LLCs)

This handout explains how an LLC operates and how to form an LLC. Information is also provided on the classification of an LLC which will determine the proper tax filing for the LLC.

HIGHLIGHTS:

  • Definition of an LLC.
  • Forming an LLC.
  • Default classification of an LLC.
  • Elected classification of an LLC.

Partnerships

This handout provides a description of how partnerships work and explains the tax reporting requirements of the partnership and its partners. Advantages and disadvantages of a partnership are also discussed.

HIGHLIGHTS:

  • What you need to know about partnerships.
  • Partnership tax filing.
  • Tax filing for partners of a partnership.
  • Advantages and disadvantages of a partnership.
  • General and limited partners.

S Corporations

This handout explains what a taxpayer needs to know about S corporations, including the business formalities and tax filing. It includes a comparison of the advantages and disadvantages of an S corporation.

HIGHLIGHTS:

  • Qualifications of an S corporation.
  • Corporate formalities.
  • Reasonable wages.
  • Tax forms for the S corporation and shareholder.
  • S corporation advantages and disadvantages.