Dr. Escalante Management Group, Inc.

Selecting the right type of company for your new business helps maximize your chances of financial and operational success. Common business structures include:

C Corporation

• Independent legal and tax structures separate from their owners.
• Help separate your personal assets from your business debts.
• No limit to the number of shareholders.
• Taxed on corporate profits and shareholder dividends.
• Must hold annual meetings and record meeting minutes.

Limited Liability Companies (LLCs)

• Independent legal structures separate from their owners.
• Help separate your personal assets from your business debts.
• Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners).
• No limit to the number of owners.
• Not required to hold annual meetings or record minutes.
• Governed by operating agreements.

Partnerships

• Partners remain personally liable for lawsuits filed against the business.
• Usually no state filing required to form a partnership.
• Easy to form and operate.
• Owners report their share of profit and loss in the company on their personal tax returns.

S Corporations

• Independent legal and tax structures separate from their owners.
• Help separate your personal assets from your business debts.
• Owners report their share of profit and loss in the company on their personal tax returns.
• Limits on number of shareholders, who must be U.S. citizens or residents.
• Must hold annual meetings and record meeting minutes.

Sole Proprietorships

• Owner remains personally liable for lawsuits filed against the business.
• No state filing required to form a sole proprietorship.
• Easy to form and operate.
• Owner reports business profit and loss on their personal tax return.