What is the difference between LLC, LLP, corporation, S Corporation, sole proprietorship and partnership?
Limited liability partnership, limited liability companies and limited partnerships are unincorporated entities, but are still considered formally organized entities. • 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 federa