Below is a summary of the most common business entity designations:

C-Corporation (C-Corp)

Positives

• Ability to “Go Public”
• Most recognized and respected in the market place

Negatives

• Double Taxation and Conversation Consequences
• Most intense annual reporting

S-Corporation (S-Corp)

Positives

• Pass-through taxation
• Self Employment Tax Protection
• More protection than LLC

Negatives

• Restrictions on Shareholders (Eligibility rules and 100 shareholder maximum)
• More money for setup and annual reporting than LLC

Limited Liability Corporation (LLC)

Positives

• Low startup cost
• Protects your personal assets
• Pass-through taxation

Negatives

• More self-employment tax than S-Corp
• Lower professional appearance