LLC (Limited Liability Partnership)

A Limited Liability Partnership (LLP) allows for a partnership structure where each partner's liabilities are limited to the amount they put into the business. This means partners are not personally responsible for the negligence or misconduct of other partners.

This structure is highly popular among professional groups such as attorneys, accountants, and architects who want to pool resources while minimizing personal risk.

LP (Limited Partnership)

A Limited Partnership requires at least one general partner who manages the business and carries unlimited personal liability, and one or more limited partners who provide capital but have no active role in management.

Limited partners are only liable up to the amount of their investment. This is an excellent structure for businesses looking to raise capital from investors who do not want to be involved in day-to-day operations.

Non-profit Organization

A nonprofit corporation is an organization that has a mission to serve the public interest and has filed incorporation papers with the state. Because the corporation works for the public good, it receives exemptions from state and federal taxes it would otherwise have to pay.

The basic definition of a nonprofit organization is a business that does not pass on excess revenue to owners, shareholders, or other investors. Instead, a nonprofit uses this money to further its purpose, which includes paying the salary of its owners and other employees.

The main benefit as a non-profit organization is "No Taxes". As a nonprofit corporation, your organization can get state and federal exemptions from corporate income taxes.

Sole Proprietorship

A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and the owner.

While it is easy to form and gives you complete control over your business, it also means you are personally liable for all business debts, obligations, and responsibilities.

General Partnership

A general partnership is an arrangement by which two or more persons agree to share in all assets, profits, and financial and legal liabilities of a jointly-owned business.

In this structure, all partners have independent power to bind the business to contracts and loans. Each partner also has a total liability, meaning they are personally responsible for all of the business's debts and obligations.

Incorporation (S-Corp, C-Corp)

Incorporating creates a distinct legal entity separate from its owners. A C-Corporation is taxed separately from its owners (double taxation), but offers the strongest protection from personal liability and allows unlimited shareholders.

An S-Corporation is a special tax status granted by the IRS that allows corporations to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes, avoiding double taxation.