Incorporation Services

A Sole Proprietorship is an unincorporated business owned by one individual. The owner is not considered a separate legal entity from the business. This means that all liabilities are the owner's responsibility, and their personal assets may be at risk. 

 A Partnership is an unincorporated entity owned by two or more individuals. Owners have unlimited liability for debts unless they are limited partners. The partnership itself does not pay federal or state taxes; these liabilities are passed to the partners' personal tax returns. Partners do not receive salaries but get guaranteed payments, which are subject to self-employment taxes. 

An S Corporation is like a regular corporation but usually exempt from federal tax. Profits and losses pass directly to shareholders' personal tax returns, avoiding the "double taxation" of C Corporations. 

A C Corporation, also known as a regular corporation, is a legal entity separate from its owners or shareholders. C Corporation income is taxed twice: first at the corporate level, and then on individual shareholders' tax returns when distributed as dividends. This process is called "double taxation." 

Limited Liability Companies are legal entities under state law that shield owners from personal liability for debts. For federal income tax purposes, an LLC may be classified as a partnership, C corporation, S corporation, or a disregarded entity.