- The three available types are the C Corporation, the S Corporation and the LLC
- All three shield you from personal liability; only the corporation itself can be sued
- Owners and officers cannot be individually sued
- The Corporation structure is used primarily when there will be several or many outside investors and/or shareholders buying in
- The LLC structure is the most flexible and ideal for most small businesses
- It can also be used by large businesses that want to steer clear of extensive business formalities
- The S Corp is somewhere in the middle between the LLC and C Corporation
- The S Corp allows you to involve outside investors, but also requires corporate formalities and makes it more difficult to make quick decisions and conduct business rapidly
- Unless you intend to involve a large number of outside investors, the LLC is the best entity for small businesses
- The S Corp is the best structure for a small business used solely as a vehicle for personal investment, but not involving outside investors.
