Business Structures
What structures are available for your business?
- Sole Proprietorship
- General Partnership
- Limited Partnership
- S-Corporation
- C-Corporation
- Limited Liability Company (LLC)
Business Structures at a Glance:
Sole Proprietorship
- Simplest form of business
- Sole owner and business are not legally distinct entities
- Owner is usually liable for business debts
General Partnership
- A partnership in which there are no limited partners
- Each partner has managerial power
- Each partner has unlimited liability for partnership debts
Limited Partnership
- Has limited and general partners
- General partners manage & are individually liable for debts of the partnership
- Limited partners are limited in the amount they can lose by the amount of money they invested in the partnership
APPROVED STRUCTURE
S-Corporation
- Corporation that is eligible and elects to be taxed under Subchapter S of the Internal Revenue Code
- Shareholders pay tax on the corporation's income by reporting their pro rate shares of pass-through items on their individual income tax returns
- Owners are legally seperated from the business
C-Corporation
APPROVED STRUCTURE
- An organization authorized by state law, to act as a legal entity distinct from its owners
- Has it's own name and it's own powers to achieve legal purposes, and therefore, is a separate legal entity
Limited Liability Co (LLC)
- A hybrid between a corporation and a limited partnership
- Provide protection from personal liability, just as corporations do
- Receive the tax treatment of limited partnerships, or a C corporation, whichever the members of the LLC desire
APPROVED STRUCTURE
Which business structures are best for building business credit?
The best structure for building business credit is one that:
- Separates you from your business.
- Has it's own tax identification number.
- Separates the debts of the business from that of the owners/officers.
The business structures that will do this are:
- S-Corporation
- C-Corporation
- Limited Liability Company (LLC)
When to use a S-Corporation:
- Owners live in a state with no personal state income tax.
- Have one or two individuals who own the company. (Can be as many as 35)
- Have sales less than $250,000.
When to use a C-Corporation:
- Owners live outside the country.
- Owners live in a state with personal state income tax.
- Several individuals are involved in the ownership.
- Other entities are in involved in the ownership.
- Have sales greater than $60,000.
When to use a LLC:
- Any partnership.
- Owning real estate for investment purposes.
- Have several entities that own the business.
- Looking for complete protection of the owner's personal liability.
Need Help Filing?
Even if you haven't filed your company , you can still get started with the TrueBuild Program TODAY and we will guide you through the whole process with one of our Trusted Partners! This is the first big step in legitimizing your business so make sure you do it the right way!

Swyft Filings
Use Swyft Filings to start an LLC, corporation, or other business entity in under 10 minutes. Launch your business starting at $0 + state fees
- Launch your business starting at $0 + state fees
- Free Name Search
- Personal Customer Support
- Fast Turnaround Time
- 100% Satisfaction Guarantee
- Online Access to Corp Documents

Inc Authority
Want to form an LLC easily online? Click to learn more about Inc Authority's business formation services & file your LLC or corporation today!
- Free LLC Registration (just pay state fees)
- Free Name Search
- Free EIN (limited time)
- Free Registered Agent
- 100% Satisfaction Guarantee
- Live Expert Support
The ONLY TrueBuild Corporate Credit Program...
Ready to get Started?
YES!
GET LOGGED IN AND
STARTED RIGHT NOW
STARTED RIGHT NOW