What is the difference between LLC, LLP, LP, S Corporation, sole proprietorship and partnership?
• Limited liability company (LLC*) – A business structure that blends some characteristics of a partnership and a corporation. Liabilities are limited to the owner’s agreed investment in the business. A LLC is an entity formed under state law by filing articles of organization. None of the members of an LLC are personally liable for the business’s debt. • Limited liability partnership (LLP*) – A hybrid form of a general partnership. • Limited partnership (LP*) – A form of partnership in which liabilities are limited to general partners, while limited partners’ liabilities are limited to their agreed investment in the business. • S Corporation – An eligible domestic corporation that can avoid double taxation (once to the corporation and again to the shareholders and/or employees). This business structure is exempt from federal income tax other than tax on certain capital gains and passive income. The income passes through to individual shareholders and is taxed at the individual level.
• Limited liability company (LLC*) – A business structure that blends some characteristics of a partnership and a corporation. Liabilities are limited to the owner’s agreed investment in the business. A LLC is an entity formed under state law by filing articles of organization. None of the members of an LLC are personally liable for the business’s debt. • Limited liability partnership (LLP*) – A hybrid form of a general partnership. • Limited partnership (LP*) – A form of partnership in which liabilities are limited to general partners, while limited partners’ liabilities are limited to their agreed investment in the business. • S Corporation – An eligible domestic corporation that can avoid double taxation (once to the corporation and again to the shareholders and/or employees). This business structure is exempt from federal income tax other than tax on certain capital gains and passive income. The income passes through to individual shareholders and is taxed at the individual level.
