Pt3. Ranking Business Entity's Flexibility LLCs - Limited Liability Company Own a business or thinking of starting a business? Here is a ranking of the type of corporate entity that offers the least flexibility to most flexibility in ownership. 4. C-Corporation - C-corps offer the most complex structure with a clear separation between ownership (shareholders) and management (board of directors). While this offers advantages like attracting investors, it also comes with a ton of rules and regulations. 3. S Corporation - S-corps offer a middle ground. They avoid double taxation (where profits are taxed at the corporate level and then again at the shareholder level) but with limitations. There's a cap on the number of shareholders (100) and restrictions on who can be a shareholder (e.g., only US citizens and certain trusts). 2. LLC - LLCs strike a great balance. They offer liability protection (your personal assets are shielded from business debts) with flexibility in ownership and management. There are no restrictions on the number or type of owners (individuals, corporations, etc.), and members can choose how they want to be managed. 1. Sole Prop - The simplest option, a sole proprietorship is basically you and your business. It offers the most flexibility in terms of set-up and management, but there's no separation of liability. This means your personal assets are on the line if the business faces debts. Remember, the best structure depends on your specific needs. Consider factors like liability protection, ownership goals, and tax implications. Don't hesitate to consult with professionals to determine which best meet your needs. #ccorp #scorp #llcformation #soleproprieter #cpwa #bcorp #1percentftp #businessformation