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?

Answer 3 quick questions and get a CPA-backed recommendation.

Get advice

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

Full details

A Single-Member LLC protects your personal assets while passing business income through to your personal tax return. The IRS treats it as a disregarded entity by default.

Can elect S-Corp status later to save on self-employment tax

Eligibility notes

US Citizens, Green Card, and most visa/ITIN holders eligible
Cannot issue stock or take on VC investment easily

Form a LLC Compare 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

Full details

A Multi-Member LLC is taxed as a partnership by default. You can split profits however you want — it doesn't have to match ownership percentages.

No board required

Eligibility notes

All members must sign the Operating Agreement
US Citizens, Green Card, and most visa/ITIN holders eligible

Form a LLC Compare 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

Full details

An S-Corp is a tax election, not an entity type. You form an LLC or C-Corp, then elect S-Corp status via IRS Form 2553. You pay yourself a reasonable salary; remaining profit passes through free of self-employment tax.

Eligibility notes

Max 100 shareholders
All shareholders must be US Citizens or Green Card holders (H-1B/L-1/ITIN NOT eligible)
One class of stock only

Form a S-Corp Compare 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

Full details

A C-Corp is a separate taxable entity. It can issue multiple classes of stock and is the default choice for venture capital, foreign investors, and IPO-track companies.

Personal liability protection
More complex compliance

Eligibility notes

Anyone can be a shareholder
Requires stated par value on shares

Form a C-Corp Compare 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

Full details

A PLLC is an LLC for state-licensed professionals. Some states require it (or a PC) for practices in medicine, law, accounting, engineering, and architecture.

Eligibility notes

All owners must be licensed in the profession in the state
State licensing board approval required

Form a PLLC Compare 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

Full details

A Nonprofit Corporation is formed for charitable, educational, religious, or scientific purposes. After formation, you can apply for 501(c)(3) tax-exempt status with the IRS.

Personal liability protection for board members
501(c)(3) approval can take 3-6 months

Eligibility notes

Minimum 3 directors (varies by state)
Purpose must qualify under IRS rules

Form a Nonprofit Compare all types

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

Full details

A Series LLC creates a master LLC with unlimited child 'series' — each with its own assets, members, and liability shield. Popular with real estate investors holding multiple properties.

Eligibility notes

Available in Delaware, Texas, Illinois, Nevada, Iowa, Missouri, Oklahoma, Tennessee, Utah, DC, Alabama, Kansas, Montana, North Dakota, Virginia

Form a Series LLC Compare all types

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?

Answer 3 quick questions and get a CPA-backed recommendation.

Get advice

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

Full details

A Single-Member LLC protects your personal assets while passing business income through to your personal tax return. The IRS treats it as a disregarded entity by default.

Can elect S-Corp status later to save on self-employment tax

Eligibility notes

US Citizens, Green Card, and most visa/ITIN holders eligible
Cannot issue stock or take on VC investment easily

Form a LLC Compare 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

Full details

A Multi-Member LLC is taxed as a partnership by default. You can split profits however you want — it doesn't have to match ownership percentages.

No board required

Eligibility notes

All members must sign the Operating Agreement
US Citizens, Green Card, and most visa/ITIN holders eligible

Form a LLC Compare 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

Full details

Eligibility notes

Max 100 shareholders
All shareholders must be US Citizens or Green Card holders (H-1B/L-1/ITIN NOT eligible)
One class of stock only

Form a S-Corp Compare 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

Full details

A C-Corp is a separate taxable entity. It can issue multiple classes of stock and is the default choice for venture capital, foreign investors, and IPO-track companies.

Personal liability protection
More complex compliance

Eligibility notes

Anyone can be a shareholder
Requires stated par value on shares

Form a C-Corp Compare 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

Full details

A PLLC is an LLC for state-licensed professionals. Some states require it (or a PC) for practices in medicine, law, accounting, engineering, and architecture.

Eligibility notes

All owners must be licensed in the profession in the state
State licensing board approval required

Form a PLLC Compare 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

Full details

A Nonprofit Corporation is formed for charitable, educational, religious, or scientific purposes. After formation, you can apply for 501(c)(3) tax-exempt status with the IRS.

Personal liability protection for board members
501(c)(3) approval can take 3-6 months

Eligibility notes

Minimum 3 directors (varies by state)
Purpose must qualify under IRS rules

Form a Nonprofit Compare all types

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

Full details

A Series LLC creates a master LLC with unlimited child 'series' — each with its own assets, members, and liability shield. Popular with real estate investors holding multiple properties.

Eligibility notes

Available in Delaware, Texas, Illinois, Nevada, Iowa, Missouri, Oklahoma, Tennessee, Utah, DC, Alabama, Kansas, Montana, North Dakota, Virginia

Form a Series LLC Compare all types