most formal structure is used by both small and large businesses.
Limited liability applies to all stockholders and there is no
limit on the number of stockholders. The corporation offers perpetual
existence and can raise capital by selling stock in public offering
and trading stock on public exchanges.
with Subchapter S status also offers its owners limited liability,
but the main advantage here is that the IRS allows any tax obligations
on the corporation's income to be "passed through" to
the personal income tax of the owners. Thus, the owners are only
taxed on one level, rather than on both. Law requires that all
S corporations must be domestic and all shareholders must be US
is not a corporation, but it offers many of the same advantages.
There is limited liability protection and "pass through "
taxation for the owners, or members. This is a structure that
is particularly suited to family businesses, professional organizations,
non-US residents and foreign businesses. Most states require two
members to form an LLC and it is not a perpetual structure with
a duration limit of 30 years in most cases.
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