C Corporations
Advantages
*offers employee stock incentives
*easier to raise capital as a whole instead of as a sole proprietorship or partnership
*utilize health care benefits at a corporation
Disadvantages
*cost more to start then a sole proprietorship or partnership
*not efficient
*more taxes
S Corporations
Advantages
*minimize taxes
*easier to raise capital as a whole instead of as a sole proprietorship or partnership
*protection of limited personal liability without paying taxes
Disadvantages
*cost more
*has many requirements
*closely watched by IRS
LLCs (Limited Liability Company)
Advantages
*personal liability protection
*can draw own contract
*can have many different interest
Disadvantages
*does not offer incentive stocks
*requires at least two members
*earnings are subject to self-employment tax
