- Understand the differences between C and S corporations
- Understand what a benefit corporation is
- Understand the advantages and disadvantages of corporations
- Understand the advantages and disadvantages of a limited liability company (LLC)
C Corp, B Corp, and LLCs
You can view the transcript for “Legal Basics and Business Entity Formation: Crash Course Business Entrepreneurship #5” here (opens in new window).
S Corp
You can view the transcript for “What Is An S-Corp?” here (opens in new window).
Comparing Organization Types
| Characteristic | Sole Proprietor-ship | Partner-ship | LLC | LLP | Corporation | S Corporation |
|---|---|---|---|---|---|---|
| Owner(s) | 1 sole proprietor | 2 or more partners | 1 or more members | 2 or more partners | 1 or more shareholders | 1 or more shareholders |
| Sole authority for decisions | Yes | No | No[1] | No | No[2] | No[3] |
| Easy setup | Yes | Yes | Yes | Yes | No | No |
| Minimal regulations | Yes | Yes | Yes | Yes | No | No |
| Single taxation | Yes | Yes | Yes | Yes | No | Yes |
| Easy access to expertise | No | Somewhat | Somewhat | Somewhat | Yes | Yes |
| Easy access to capital | No | Somewhat | Somewhat | Somewhat | Yes | Yes |
| Limited legal liability | No | No | Yes | Yes | Yes | Yes |
| Unlimited life | No | No | Possible | Possible | Yes | Yes |
| Easy transfer of ownership | No | No | No | No | Yes | Yes |