Home > Incorporating my Business > Choosing a Business Structure
Choose a Type of Business
Before you begin the incorporation process, you will need to choose a business structure. The Company Corporation can help you form a new corporation or Limited Liability Company (LLC) in any state. Please review our Business Comparison Chart below for the advantages of forming a C Corporation, Subchapter S Corporation, or LLC.
Business Comparison Chart
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C Corporation |
Subchapter S Corporation |
Limited Liability Company |
General Partnership |
Sole Proprietor |
| Owners have limited liability for business debts and obligations |
X |
X |
X |
|
|
| Created by a state-level registration that usually protects the company name |
X |
X |
X |
|
|
| Business duration can be perpetual |
X |
X |
X |
|
|
| May have an unlimited number of owners |
X |
|
X |
X |
|
| Owners need not be U.S. citizens or residents |
X |
|
X |
X |
X |
| May be owned by another business, rather than individuals |
X |
|
X |
|
|
| May issue shares of stock to attract investors |
X |
X |
|
|
|
| Owners can report business profit and loss on their personal tax returns |
|
X |
X |
X |
X |
| Owners can split profit and loss with the business for a lower overall tax rate |
X |
|
|
|
|
| Permitted to distribute special allocations, under certain guidelines |
|
|
X |
X |
|
| Not required to hold annual meetings or record meeting minutes |
|
|
X |
X |
X |
For more details, read selecting the right business structure.
Ready to Get Started?
Form an LLC or incorporate now with our online order form, or contact a Business Specialist at 800-818-6082 (toll-free) or 302-636-5440. Or, read about choosing a state.
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