A corporation is a separate legal entity that issues shares (stake in the company) to owners and protects their personal liability A partnership is owned by its partners and is easier to establish and ...

The choice will have important implications for your legal exposure, management structure and, ultimately, your bottom line. Many, or all, of the products featured on this page are from our ...

One of the more confusing questions partnerships face is when to use the so-called aggregate or entity approaches. Most partnerships apply the entity approach in determining partnership income; they ...

Business entity types are generally split into two categories: Informal associations and formal associations. Informal associations (i.e., partnerships and sole proprietorships) are easily created ...

The structure of your business influences everything from taxes to day-to-day operations. Browse Investopedia’s expert written library to learn about sole proprietorships, LLCs, S-Corp, C-Corp, and ...

More than two decades ago, the Service announced its intention to consider simplifying the entity classification rules in Notice 95-14. It stated: “The Internal Revenue Service and the Treasury ...