Each entity structure offers unique tax consequences, legal obligations, and operational flexibilities for business owners.
Sole Proprietorship
Partnership
Limited Liability Company
Corporation
Simple filing structure reported on Schedule C. Owner pays self-employment tax on net earnings and retains full personal liability for business debts.
Unincorporated entity for two or more owners. Income passes through via Form 1065 and Schedule K-1 with flexible profit allocation rules.
Provides corporate liability defense with simplified management. Taxes default to Schedule C or 1065, with corporate tax election options.
Independent legal entity providing strong liability protection and structured corporate governance under federal and state regulations.
Key Steps for Formation
Select Entity & Name
Obtain EIN & Licensing
Tax Elections & Compliance
Determine your structure and register fictitious names (DBA) if operating under a business title distinct from your legal surname.
Secure your Employer Identification Number for banking and hiring, alongside required state permits and industry licenses.
File specialized corporate elections if beneficial, while satisfying state information statements and annual franchise taxes.
Ready to Form Your Business?
Our advisors assist you in navigating state filing requirements, EIN registration, and selecting the entity setup for maximum tax efficiency.
