Choosing a business structure is a critical step every business owner must take into consideration when going through the incorporation process. The following chart provides a high-level comparison of the most popular forms of business structure and their attributes:
| Sole Proprietor | General Partnership | C-Corp | S-Corp | Professional Corporation | Nonprofit Corp | Limited Liability Company | |
|---|---|---|---|---|---|---|---|
| Formation | No filing required | No filing required | State filing required | State filing required | State filing required | State and federal filings required | State filing required |
| Limited personal liability | No | No | Yes | Yes | Yes, except for own malpractice | Yes | Yes |
| Transferability of interest | No | No | Yes | Generally Limited | Generally Limited | N/A | Yes, Often Limited |
| Duration | Until withdrawal or death of owner | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited |
| Pass-through taxation | Yes | Yes | No | Yes | No | Tax Exempt | Yes, upon election |
| Ability to raise capital | Not as separate entity | Yes | Yes | Yes, but shareholder limits | Yes | Yes, through donations and grants | Yes |
| Limitations on number of owners | Yes | No | No | Yes | No, but all owners must be part of same profession | N/A | No |
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