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Lawrence blau & associates, llc
All corporations start as “C” corporations. “C” corporations are not taxed as pass-through entities. Within the first three months of the formation of the corporation, the shareholders can make an election to be taxed as if the corporation was an S corp.
Similar to an LLC, a Corporation’s business is separated from the owner’s personal assets. Owners are referred to as shareholders.
By default, an LLC is considered a pass-through entity, similar to a sole proprietorship or partnership. This means that the business does not pay income taxes on its profits, but the profits or losses are passed through to the owners.
A sole proprietorship or general partnership is selected by default if you do not select another business structure. A general partnership has multiple owners and a sole proprietorship has a solo owner.