2019 Small Business Resource Guide 2019 Small Business Resource Guide | Page 22

L E GA L
LEGAL
BUSINESS
STRUCTURES
@CK Alterations
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Business Structure Ownership Liability Taxes
Sole proprietorship One person Unlimited personal liability Personal tax only
Partnerships Two or more people Unlimited personal liability unless structured as a
limited partnership Self-employment tax (except for limited partners)
Personal tax
Limited liability company (LLC) One or more people Owners are not personally liable Self-employment tax
Personal tax or corporate tax
Corporation – C Corp. One or more people Owners are not personally liable Corporate tax
Corporation – S Corp. One or more people, but no more than 100, and
all must be U.S. citizens Owners are not personally liable Personal tax
Corporation – B Corp One or more people Owners are not personally liable Corporate tax
Table provided by SBA.gov
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