Business Entities

Entity Type

Owners Liability

Taxation

Formation

Corporate Maintenance

Investment

Sole Proprietorship

Fully Liable

On owners personal tax return

Not needed.

 None

Owners responsibility

General Partnership

Owner (partners) personally liable

On owners(partners) personal tax return

Simple. No filing required

Minimal,

General partners can raise money

Limited Partnership

Limited partners have limited personal liability for business debts as long as they don't participate in management. General partners personally liable for business debts.

Choose to be taxed as SchC-Sole Proprietor, Partnership or S-Corporation.

More complex than general partnership.

 More than General Partnership

General partners can raise money

Limited Liability Company

Combines a corporation's liability protection and pass-through tax structure of a partnership.

Choose to be taxed as SchC-Sole Proprietor, Partnership or S-Corporation.

More expensive to create than partnership or sole proprietorship.

 Significantly easier to maintain than a corporation.

Same as Partnerships

Professional Limited Liability Company

Same advantages as a regular limited liability company. Members have no personal liability for malpractice of other members; however, they are liable for their own acts of malpractice.

One owner: Same as propertiership Two+ owners: Same as partnership

Gives state licensed professionals a way to enjoy LLC advantages. Members must all belong to the same profession. Not available in all states.

Same as LLC

Same as Partnerships

C-Corporation

Owners have limited personal liability

Double taxation: Owners get taxed as corp + on dividends Fringe benefits can be deducted as business expense.

May have an unlimited number of shareholders. More expensive to create han partnership or sole proprietorship.

Required annual meetings and notes

Shares of stock may be sold to raise capital

Professional Corporation

Owners have no personal liability for malpractice of other owners. Owners have liability for own acts of malpractice.

PCs are granted the taxation benefits of a corporation.

Option when certain states do not allow professionals to form a C-Corp. More expensive to create than partnership or sole proprietorship. All owners must belong to the same profession.

Formality requirements (e.g. annual reports, minutes, meetings) are required to maintain corporate status.


Non-Profit Corporation

A nonprofit corporation is a corporation formed to carry out a charitable, educational, religious, literary, or scientic purpose.

Full tax advantages available only to groups organized for charitable, scientific, educational, literary or religious purposes. Contributions to charitable corporation are tax-deductible. Fringe benefits can be deducted as business expense.

Full tax advantages available only to groups organized for charitable, scientific, educational, literary or religious purposes.

Formality requirements (e.g. annual reports, minutes, meetings) required to maintain corporate status. Property transferred to corporation stays. there; if corporation ends, property must go to another non-profit.

S-Corporation

Owners have limited personal liability for business debts.

Owners report their share of corporate profit or loss on their personal tax returns. Income must be allocated to owners according to their ownership interests. Owners can use corporate loss to offset income from other sources. Fringe benefits limited for owners who own more than 2% of shares.

More expensive to create than partnership or sole proprietorship.

More formality requirements than for a limited liability company which offers similar advantages.

What our clients say about us

Insogna CPA
4.9
Based on 47 reviews
Insogna, CPA
5.0
Based on 18 reviews
Outstanding service, knowledge and support. I would highly recommend this firm to anyone for personal or business tax or financial assistance. A big…
Jerome H.
Jerome H.
Insogna CPA made my experience of creating an LLC fast and easy. I was feeling very intimidated and unsure about the process but was pleasantly surprised at the straightforward process and reasonable price. This will be my first stop for any accounting needs!
Jennifer Brown
Jennifer Brown
We’ve used Insogna CPA for over 7 years and wouldn’t go anywhere else. They are unfailingly professional, thorough and patient. No matter how many questions…
Jodi C.
Jodi C.
I like to do as little as possible when it comes to taxes. Insogna does everything and on time. All we had to do was scan a few documents and answer a reasonable and brief questionnaire. SATISFIED.
Doug Windland
Doug Windland
I’ve been through MANY cpa’s and finally landed on Insogna. There’s never any surprise bills, all expectations and prices are clear and reasonable up…
Dustin B.
Dustin B.
As of 2019, I have used Ingsogna to file my taxes for three years. I keep coming back because it’s easy, affordable and accurate. The electronic document room is a great place to store everything. I have always worked with Ami and she’s always professional and courteous. I used TurboTax for years and that was fine, but as life changed, compensation increased and the tax laws continued to evolve, I found that Ami has saved my family money each year.
Christia Churchill
Christia Churchill
I have worked with the folks at Insogna for almost 4 years and I could not be happier with their services. Very responsive if we have a question and exceptionally friendly. They give me the flexibility to stay focused on my business knowing that are keeping our books in-line.
Kris Byrd
Kris Byrd
I’ve used Insogna CPA’s bookkeeping, tax preparation, and professional services for my business (Bravery Media) and personal finances since 2012. They have always been helpful, quick to respond, and impeccable in their work. As a small business owner, it’s nice to not have to worry about accounting while I’m trying to generate more business. I’ve recommended Chase and his staff to dozens of people since I started working with them.
Joel Goodman
Joel Goodman
I’ve used Insogna CPA’s bookkeeping, tax preparation, and professional services for my business (Bravery Media) and personal finances since 2012. They have…
Joel G.
Joel G.

Endorsements, Certifications, and Partnerships