| Taxation |
Taxed at the shareholder level |
Taxed at the corporate level |
Taxed at the shareholder level |
Taxed at the shareholder level |
| If Business is profitable |
|
Lower taxes |
|
|
| Ability to Raise Capital |
Limited to only one ownerÂ’s capital |
Very easy to raise |
Limited to partnersÂ’ capital |
Limited to 100 shareholders. |
| Ability to Transfer Ownership |
Cannot transfer ownership of their business |
Can add new shareholders and transfer shares with relative ease |
May require that the partnership terminate and a new partnership be formed |
partnership terminate and a new partnership be formed Can add new shareholders and transfer shares with relative ease |
| Limited Liability Protection |
Unlimited liability |
Limited liability |
Unlimited liability |
Limited liability |
| Ease of Incorporation |
Very easy to form |
require filing various papers with your state government and with the Internal Revenue Service |
require filing various papers with your state government and with the Internal Revenue Service |
Limited to 100 shareholders. |
