101: Business Formation
Starting your business can be stressful, but it doesn't have to be.
The team at 101: is ready to assist you every step of the way. We'll walk you through the different entity types and help you decide what is best for you and your type of business.
A sole proprietorship is just an individual running a business. Unlike an LLC, a sole proprietorship is not a separate entity. A sole proprietorship is just another way to say you are an individual with your own business.
LLC stands for limited liability company, and it can protect the personal assets of a business owner from lawsuits. An LLC can be taxed as a sole proprietorship, an S Corporation or a partnership. An LLC can have an unlimited number of members unlike an S-corp, which is limited to 100 shareholders.
An S corporation or S corp, also known as an S subchapter, refers to a type of corporation that meets specific IRS requirements. The S corp is a structure that offers certain tax advantages over C corporations, or C corps, which make up the bulk of corporations.