C Corporations
Benefits
1. Corporations can utilize corporate benefit health plans, which often offer better retirement options and benefits than those offered by noncorporate plans
2. If a stockholder dies or wishes to sell out, the corporation still continues
Disadvantage
1. It takes more time and effort to maintain
2. It's costlier to start than a sole proprietorship or partnership
3. http://www.allbusiness.com/business-planning/business-structures-corporations/2515-1.html
S Corporations
Benefits 1. You can have the protection of limited personal liability without having to pay corporate taxes.
2. You can minimize self-employment tax and FICA tax. Your profits, as a shareholder, are not taxed in this manner.
Disadvantage
1. Like a C Corporation, it can be costly to set up and follow corporate formalities.
2. Numerous regulations and requirements must be upheld by an S Corporation, including a limit on the number of shareholders.
3. http://www.allbusiness.com/business-planning/business-structures-corporations/2516-1.html
LLCs
Benefits
1. Owners have limited personal liability for business debts even if they participate in management
2. Profit and loss can be allocated differently than ownership interests
Disadvantage
1. More expensive to create than partnership or sole proprietorship
2. State laws for creating (LLC) may not reflect latest federal tax changes
3. http://www.residual-rewards.com/llc-advantages-disadvantages.html
