A reference guide to business entity types within the United States of America
UNITED STATES
Business Entity Types
— A REFERENCE GUIDE —
01
Sole Proprietorship
Single owner, no legal separation between owner and business. Unlimited personal liability. Profits taxed on personal return.
02
General Partnership
Two or more owners sharing profits, losses, and management. Partners hold joint and several liability. Pass-through taxation.
03
Limited Partnership
General partners manage and bear unlimited liability, limited partners contribute capital with liability capped at their investment.
04
LLP
Limited Liability Partnership. Common among professional firms. Partners shielded from liability for other partners' acts.
05
LLC
Limited Liability Company. Hybrid structure offering corporate liability protection with pass-through tax treatment by default.
06
C Corporation
Separate legal entity owned by shareholders. Strong liability protection. Subject to corporate tax plus dividend tax at shareholder level.
07
S Corporation
Tax election available to qualifying corporations. Avoids double taxation by passing income to shareholders. Capped at 100 US shareholders.
08
B Corporation
Benefit Corporation. For-profit entity legally committed to social and environmental performance alongside shareholder returns.
09
Nonprofit Corporation
Organized for charitable, educational, religious, or scientific purposes. May qualify for tax-exempt status under IRC 501(c).
10
Cooperative
Owned and democratically controlled by members who use its services. Profits returned to members as patronage dividends.
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