Business Type | Liability Protection | Taxation | |
LLC | Members not personally liable | Flexible: can be taxed as sole proprietor, partnership, or corporation | |
Sole Proprietorship | Personal responsibility for all debts | Income taxed once as personal income | |
Partnership | Shared and individual responsibility | Profits passed through to personal tax returns | |
C-Corporation | Limited liability for business debts | Double taxation: corporate level and as dividends |