Generally
Business and business owner: separate legal and tax entities
Filing fees, incorporation fees and annual lists of officers/directors: required
Limited Liability: owners have limited liability if the company is properly formed, adequately capitalized, and corporate formalities are followed; owners are, however, legally responsible for their own actions and any actions by other owners of which they have approved
Life of business: unlimited
Loan availability: banks more willing to loan capital
Transferability of interests: the business may be set up so that shares or interest in the business may be easily transferred
Corporate formalities: at minimum the shareholders and board of directors must hold a meeting once a
year; annual list of directors/officers filed with the Nevada Secretary of State with fee annually

“C” Corporations
taxed under subchapter “C” of the IRS code
Number of owners: one or more
Profits and losses: reported by the entity
Taxes: the entity is taxed at the corporate level; the tax rate is higher than for most individuals (except     for some personal service corporations)

• Operators are paid salaries and may avoid paying income tax on company profits by leaving profits in the company
• owner pays federal unemployment tax and FICA on salary paid to him/herself
• owner does not pay self-employment tax on earnings
• income from sale of the business may be heavily taxed

Fringe benefits: favorable tax treatment
Ownership options: complex ownership interests may be created through use of stock options

“S” Corporations
taxed under subchapter “S” of the IRS code
Number of owners: one to 100 shareholders
Profits and losses: reported by owners
Taxes: owner should pay him/herself a reasonable salary, which is subject to all withholdings, or owners may be subject to self-employment tax on all business earnings
Fringe benefits: moderate tax advantage
Ownership options: only one class of stock is permitted, no non U.S. Citizen may own more than 20%
Restrictions on ownership: owners must be individuals, estates, or certain trusts, but cannot be other corporations

Number of owners: one or more
Business and business owners: separate legal entities; may elect to be taxed as either a partnership or a corporation
Filing fees: required to form the LLC
Annual requirements: annual list of managers or members filed with Nevada Secretary of State with fee
Limited Liability: owners have limited liability if the company is properly formed, adequately capitalized, and corporate formalities are followed; owners are, however, legally responsible for their own actions and any actions by other owners of which they have approved
Life of Business: unlimited unless otherwise specified
Profits and Losses: reported by owners at a percentage pursuant to agreement
Taxes: entity may elect to be taxed as a corporation, partnership or be a disregarded entity
Loan availability: banks moderately willing to loan capital
Transferability of interests: restrictions detailed in Operating Agreement otherwise transferable
Restrictions on ownership: any person or entity may be an owner (unless electing to be taxed as an S-corporation)

Number of owners: partnership is automatically created when two or more people begin a business or joint venture for profit even if they do not have a contract in writing
Business and business owner: partnership is considered a separate entity but partners still have personal
liability
Profits and losses: reported by owners
Taxes: general partners pay self-employment tax on net business earnings; limited partners do not pay self-employment tax
Fringe benefits: generally not deductible; a percentage of health insurance is deductible
Loan availability: banks wary of loaning capital
 
    General Partnerships
    Personal Liability: owners have unlimited personal liability
    Extended Liability: owners may be liable for the actions of other owners
    Management: owners can bind, or contract on behalf of, the partnership

    Limited Partnerships
    Personal Liability: one owner is a general partner and retains complete personal liability
    Limited Liability: limited partners have limited liability up to the amount of the investment
    Management: limited partners are restricted as to the amount of participation and control they have over the company
    Filing:  must file with Nevada Secretary of State to form Limited Partnership

Number of Owners: one only unless husband and wife are owners
Business and business owner(s): same entity
Profits and losses: reported by owner on individual tax return
Finances: can co-mingle with owner’s finances; maintaining separate accounts is preferable
Filing, incorporation fees, annual reports: not required
Taxes: owner pays self-employment tax on net business earnings
Personal Liability: owner has unlimited personal liability
Fringe benefits: generally not deductible; a percentage of health insurance is deductible
Loan availability: banks wary of loaning capital