The Different Types of Business Entities in the U.S.

If you're starting a business in the U.S., you can choose from several entity types:

Sole proprietorship: the business has one owner and is not an LLC or a corporation. The owner would report the profit or loss of the business on Schedule C and file this along with their personal income tax return (the 1040).

Partnership: the business is owned by two or more persons. The partnership files Form 1065 to report its profit or loss, with each partner being taxed on their share of the profit or loss on their personal tax returns.

C corporation: a corporation is a separate legal entity created by filing articles of incorporation in one of the fifty U.S. states. The owners (shareholders) are shielded from personal liability for the corporation's debts, but the corporation is subject to double taxation (the corporation is taxed on its profits, and then shareholders are taxed on dividends they receive from the corporation).

S corporation: after forming a C corporation, shareholders may elect for the corporation to be treated as an S corporation. This eliminates double taxation (S corporations are a flow-through entity with shareholders taxed on their proportionate share of the corporation's profit or loss). However, there are restrictions on the number and identify of S corporation shareholders.

LLC: a single person or multiple people can form an LLC in any of the fifty U.S. states. An LLC is a noncorporate entity that provides the limited liability of a corporation but may be taxed as a partnership (if the LLC has multiple owners) or a sole proprietorship (if the LLC has a single owner).—
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[gopalkrishna]

The way u are enriching lives of millions with ur truly easy to understand videos is amazing. May the force be with you always.

[inkling]

Learning this at work and I was so confused! You helped me to understand the different types and the concepts in a much easier way, thank you so much!

[majgibson]

Very simple and easy to follow. Thank you so much

[_adamlifts]

I really liked this video and you explain it well, wow.

Thank you, keep it up

[qvuzidw]

It a lot to take in but very interesting. I hope it gets less confused.

[vickisherman]

Awesome video. So helpful! Thank you!!! 🙂

[kavitarani]

Which is best for holding company?

Pls tell me 🙏

[SD-efqp]

Can someone explain what do you mean by an IRE- Individual Related entity. Any help is much appreciated 👍

[yomajo]

Microstrategy's majority of Bitcoin holdings are in LLC subsidiary. Question. Are shareholders of parent have any legal claim to LLC assets, or can Saylor fuck all?

[ceezgeez]

why even keep any assets in the llc then?

[stephenieafful]

If I want to give shares of my company do I file for corp or LLC

[realdmags]

I got some questions if u could get back to me