| |
C
Corporation |
S
Corporation |
Limited
Liability Company |
Partnership |
Sole
Proprietor |
| Advantage |
Limitation of liability and
ease in transfer of ownership |
Limitation of liability and
avoidance of double taxation |
Limitation of liability and
lesser restrictive transfer of ownership than S-Corp |
Limitation of liability to
limited partners |
Independence and flexibility |
| Legal
Liability |
Limited |
Limited |
Limited |
Limited to Limited partners
& Unlimited for General partner |
Unlimited |
| Taxation
of income |
Double taxed Once as at the
corporate level and then at the shareholders level |
Taxed at the shareholders'
level only
No double taxation |
Generally taxed at the
shareholders' level only; however, classification may result in double
taxation |
Taxed at the shareholders'
level only
No double taxation
|
Income taxed directly to owner |
| Tax Forms
reporting |
Form 1120 |
Form 1120S |
Form 1065 unless otherwise
classified |
Form 105 |
Schedule C attached to Form
1040 |
| Continuity |
Unlimited |
Unlimited |
Varies and can affect tax
status |
Limited, unless otherwise
provided in the agreement |
Limited
to the life of proprietor |
| Cost of
maintenance |
Highest |
Similar to Corporation |
Similar to Corporation |
Similar to Corporation |
Lowest |
| Additional
Requirements |
No |
Yes |
No |
Yes |
No |
|
TEXAS
State
franchise tax |
Subject to state Franchise
tax |
Subject to state Franchise
tax |
Subject to state Franchise
tax |
Not subject to state Franchise
tax |
Not subject to state Franchise
tax |
| Cost of
Incorporation in TEXAS |
Less than Partnership |
Same as C Corporation |
Less than Corporation |
Highest |
No incorporation cost |
