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Entity Comparison Chart
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  C Corporations S Corporations LLCs & LLPs General Partnerships Sole Proprietorships
Liability of Owners Limited, even if shareholders participate in management Limited, even if shareholders participate in management Limited, even if members participate in management Unlimited for general partners; limited for limited partners who do not participate in management Unlimited
Number of Owners No maximum Maximum 100 (as of 2005) No maximum.
No minimum for LLCs, minimum of 2 for LLPs
No maximum, minimum of 2 One
Profit/Loss & Distributions Special allocations permitted separate classes of stock No special allocations permitted Special allocations permitted Special allocations permitted N/A
Transferability of Interests No restrictions No restrictions, but must be eligible shareholder or "S" status terminates Restricted, typically requires approval of majority of members Generally restricted unless authorized by agreement N/A
Federal Income Taxes Maximum 35% on Corporation, plus tax on dividends to shareholders No corporate tax unless previously a C corporation None at LLC or LLP level None at partnership level Taxed on individual return
Continuity of Life Unlimited Unlimited Limited Limited N/A
Double Taxation Yes Rarely No No No
Tax Forms Required Form 1120 Form 1120S Form 1120 Form 1065 Form 1040 schedule