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Entity Types

Find the structure that fits your business.

Seven entity types. Real trade-offs. Compare liability, taxes, and ownership to find the structure that fits your business.

Not sure which one to pick?

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LLC

Single-Member LLC

Personal liability protection with simple, flexible taxes.

Cannot easily issue stock or take on VC investment
  • Personal asset protection
  • Pass-through taxation (no double tax)
  • Simple compliance — no board or minutes required
  • Self-employment tax on all profit (unless S-Corp elected)
  • Fewer investor-friendly features than C-Corp
Solo foundersConsultantsE-commerce owners

Form a LLC
Read the guideCompare all types
LLC

Multi-Member LLC

Flexible ownership and profit-sharing for 2+ partners.

All members must sign the Operating Agreement
  • Personal liability protection for all members
  • Flexible profit and loss allocation
  • Pass-through taxation via K-1
  • Requires an Operating Agreement (we include one)
  • Files Form 1065 plus K-1s each year
Family businessesCo-foundersReal estate partnerships

Form a LLC
Read the guideCompare all types
S-Corp

S-Corporation

Reduce self-employment tax once your business is profitable.

Shareholders must be US Citizens or Green Card holders — H-1B/L-1/ITIN not eligible
  • Save 15.3% self-employment tax on distributions
  • Pass-through taxation (no double tax)
  • Personal liability protection
  • Must pay yourself a reasonable W-2 salary
  • Payroll compliance required
Profitable service businesses ($80k+ net income)ConsultantsAgencies

Form a S-Corp
Read the guideCompare all types
C-Corp

C-Corporation

The standard for startups planning to raise capital or go public.

Requires formal governance: board, minutes, and annual meetings
  • Can issue preferred and common stock
  • No ownership restrictions (foreign / visa holders OK)
  • Attractive to venture capital
  • Double taxation on distributed profits
  • Formal governance (board, minutes, annual meetings)
VC-backed startupsCompanies planning IPOBusinesses with foreign shareholders

Form a C-Corp
Read the guideCompare all types
PLLC

Professional LLC (PLLC)

For licensed professionals who need a state-compliant entity.

All owners must hold the professional license in the state
  • Liability protection from non-malpractice claims
  • Pass-through taxation like a regular LLC
  • Meets state licensing requirements
  • Does not shield against personal malpractice liability
  • All members must hold the professional license
DoctorsLawyersCPAs

Form a PLLC
Read the guideCompare all types
Nonprofit

Nonprofit Corporation

For mission-driven organizations pursuing tax-exempt status.

Requires at least 3 directors in most states
  • Tax-exempt on qualified income
  • Donors get tax-deductible receipts
  • Eligible for grants
  • No owners — no distributions of profit
  • Strict compliance and annual reporting
CharitiesFoundationsReligious organizations

Form a Nonprofit
Read the guideCompare all types
Series LLC

Series LLC

Separate liability per property, one state filing.

Not available in every state — check your state first
  • Each series has its own liability shield
  • Single state filing, single tax return option
  • Add series without new formations
  • Not available in every state (available in TX, DE, IL, NV, and more)
  • Untested case law in some states
Real estate investorsFund managersMulti-project entrepreneurs

Form a Series LLC
Read the guideCompare all types