Legal Business Structures

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  • Sole Proprietorship – A business, owned by one owner, that makes no legal distinction between the individual owner and the business itself for tax purposes. The owner is fully liable for any legal actions brought against the company.

  • General Partnership – A business, owned by multiple owners, that makes no legal distinction between the individual owners and the business itself for tax purposes. Owners are fully liable for any legal actions brought against the company.

  • Limited Liability Partnership – A business, owned by general partners and limited partners, that makes no legal distinction between the General Partners and the business itself for tax purposes. General Partners are also fully liable for any legal actions brought against the company while Limited Partners have limited liability.

  • C-Corporation – A business, owned by owners and an unlimited number of shareholders, that is a separate legal entity from its owners and shareholders for tax purposes. Owners of a C-Corporation are taxed twice: once as owners and once as shareholders. Owners and shareholders are not legally liable for any legal actions brought against the company.

  • S-Corporation – A business, owned one owner and a limited number of shareholders, that is a separate legal entity from the owner and the shareholders. The owner of a S-Corporation only gets taxed once, must be a U.S. citizen, and is not liable for any legal actions brought against the company. Shareholders are not liable for any legal actions brought against the company.

  • Limited Liability Corporation (LLC) – A business, owned by one owner and an unlimited number of shareholders, that is a separate legal entity from the owner and the shareholders. LLCs need at least two people to be created. The owner of a LLC only gets taxed once and is not legally liable for any legal actions brought against the company. Shareholders are not liable for any legal actions brought against the company.

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