Sole Proprietorship, LLC’s and S-Corp

 This eBook will provide you with an overview of the three most common types of business structures: Sole Proprietorship, LLC, and S-Corporation. Starting a business can be a daunting task, but choosing the right business structure can make all the difference. The most common business structures are sole proprietorship, LLC, and S-corp. Sole proprietorship is the simplest and most popular business structure. It is owned and operated by a single person, and the owner is personally responsible for all business debts and obligations. The owner reports business income and losses on their personal tax return.

Limited Liability Company (LLC) is a hybrid structure that combines the liability protection of a corporation with the tax benefits of a partnership. The owners of an LLC are called members, and their personal assets are protected from business liabilities. LLCs can be taxed as either a partnership or a corporation, depending on the number of members and how they choose to be taxed. S-corporations are similar to LLCs in that they provide limited liability protection to their owners. They also offer tax benefits, as the income and losses are passed through to the shareholders and reported on their personal tax returns. However, S-corporations have strict eligibility requirements, including a limit on the number of shareholders and the types of shareholders that can own stock.