CORPORATION
A Corporation is formed when its members file the pertinent information with the appropriate Secretary of State and pay a relatively low filing fee. The data provided, which is quite basic, becomes public domain.
CORPORATION C
Under the US income tax laws, a corporation can be incorporated as a C or S corporation. The Corporations C must pay income tax at the corporate level on a national basis. If a corporation distributes dividends, either in cash or in kind, to its shareholders, those shareholders must also pay income tax.
CORPORATION S
An Corporation S does not pay taxes at the corporate level. Profits (and losses) are considered to "pass through" to shareholders, so they are the ones who must pay taxes on profits they make from the corporation whether or not they receive dividends from it. An Corporation S receives tax advantages only if it is registered in the United States and has 35 or fewer shareholders, none of whom may be a nonresident alien, another corporation, or, with some limitations, a trust. In addition, all shareholders must agree to form an Corporation S, and the entity cannot issue more than one class of shares.
SOCIETIES
Partnerships are similar to the Corporation S in that they are considered transmitters and are not subject to income tax at the partnership level, but rather the partners must pay income tax based on the income of the partnership. Each state has its own corporate statutes, generally based on uniform provisions, therefore there is great uniformity among states on this issue.
COLLECTIVE SOCIETIES
A general partnership results from the association of two or more persons or entities, in accordance with a contract, in order to jointly operate a business for mutual benefit. Each partner in a partnership is personally responsible for all debts and obligations of the partnership
LIMITED COMPANIES
A limited partnership results from the contractual association of one or more general partners and one or more partners with limited liability. General partners have the right and responsibility to run the business. In addition, they are personally responsible for the debts and obligations of the company. A Corporation usually participates as a general partner in establishing limited liability. Your liability is limited to your capital contributions. In addition to executing a partnership agreement, the formation of a limited partnership requires the filing of a limited partnership certificate in the state in which it is incorporated.
LIMITED LIABILITY COMPANY-LLC
Most states recently authorized the formation of LLCs. Although higher expenses are incurred in its organization, the LLC is very flexible and can be used to limit the liability of the owners to the same extent as a corporation, while for tax purposes it operates almost like a limited partnership.
