S-Corporations are not technically a distinct entity type. Rather, the term “S-Corp” refers to a type of tax treatment available to corporations and LLCs that meet certain requirements. When a corporation makes an S-Corp election, it will avoid double...
The limited liability company, or LLC, is a relatively recent addition to the menu of options available when choosing a legal entity. It is a hybrid between a partnership and a corporation, designed to combine the benefits of both. In short, an LLC enjoys the taxation...
A limited partnership is a business entity that is characterized by two distinct types of owners – general partners and limited partners. General partners are the active managers of the business and (as in general partnerships) are personally liable for the...
A general partnership is created when two or more people engage in business as co-owners for a profit. A general partnership is created automatically as a matter of business law without filing any paperwork with the State, however, in California the partners may...
A sole proprietorship is the most basic business entity type. By definition, a sole proprietorship consists of only one owner who does business without any formal incorporation. If you add a second owner, then the business automatically becomes a general...
