What Type of Business is Right for Me?

*Sole Proprietorship:

Someone who owns an unincorporated business by themselves. This business type may or may not be formally filed with the Secretary of State.

*Partnership:

A relationship existing between two or more persons who join to carry on a trade or business. This business type does not qualify for certain disadvantaged certifications.

*Corporation:

A legal entity that is separate and distinct from its owners. This business type pays its own taxes and requires bylaws for liability protection.

*S Corporation:

Corporation that elects to pass corporate income, losses, deductions, and credits through their shareholders for federal tax purposes. This type is for tax filing only; the business must be registered as an LLC or Corporation.

*Limited Liability Company (LLC): 

A corporates structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. This business type has its profits and losses pass through to its owners. 

*Non-Profit Organization (Non-business entity):

A business that has been granted tax-exempt status by the IRS because it furthers a social cause and provides a public benefit. There are over 30 types of tax-exempt organizations. 

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