703-652-5506

Recent Blog Posts

Choosing the Right Business Entity: A Comprehensive Comparison

 Posted on March 17, 2025 in Business

Blog ImageSelecting the right business entity is one of the most critical decisions for entrepreneurs and business owners. The choice between an LLC, S Corporation, C Corporation, or Partnership has far-reaching implications on liability, taxation, management structure, capital raising, and compliance requirements. A well-informed decision can optimize tax efficiency, protect personal assets, and ensure operational flexibility.

To help business owners navigate this complex decision-making process, we’ve provided a detailed side-by-side comparison of these entity types, outlining their key characteristics, advantages, and disadvantages.

Choice of Entity Comparison

Entity Limited Liability Company (LLC) S Corporation C Corporation Partnership
Description Can be formed by state filing; members manage directly or delegate to managers. Default tax treatment as partnership unless otherwise elected. Corporation that meets IRS requirements for pass-through taxation. Limited to 100 U.S. shareholders and one class of stock. Traditional corporate structure with shareholders. Subject to double taxation (corporate and individual levels). Formed by oral or written agreement (General Partnership) or state filing (Limited Partnership). Pass-through taxation.

Continue Reading ››

Back to Top