LLC

Better for max flexibility in how you manage and run your business; board of directors not required.

Unlimited owners (aka "members") allowed.

You're not personally on the hook for business liabilities.

Taxed once or twice; you're free to choose which can help minimize taxes.

Ongoing filings and fees to stay in compliance.

LLCs can't go public.

Not recognized globally; you may be taxed as a corporation in other countries.

S CORP

Better for smaller corporations.

100 shareholders max.

Owners can only get common stock.

You're not personally on the hook for business liabilities.

Taxed once—only shareholders pay on profits received.

Ongoing filings and fees to stay in compliance.

Less management flexibility; must have a board of directors.

More admin; strict rules about holding meetings and keeping records.

All shareholders must be U.S. citizens or residents.

C CORP

Best if you plan to go public one day; can issue shares to founders, employees, and investors.

Unlimited owners (aka "shareholders") allowed.

Owners may get preferred stock.

Recognized internationally.

Preferred by investors.

You're not personally on the hook for business liabilities.

Taxed twice—business pays at the corporate level, and shareholders pay on income received.

Ongoing filings and fees to stay in compliance.

Less management flexibility; must have a board of directors.

More admin; strict rules about holding meetings and keeping records.

NONPROFIT

Best if you're supporting a good cause and want to protect your personal assets.

No owners; you can start or oversee a nonprofit, but you can't technically own it.

Looks more official to potential donors.

Gives you access to public and private grants.

You're not personally on the hook for business liabilities.

Tax exempt—if you have 501(c)(3) status with the IRS.

Ongoing filings and fees to stay in compliance.

Less management flexibility; must have a board of directors.

More admin; strict rules about holding meetings and keeping records.

Pricier application and filing fees if you try for 501(c)(3) tax-exempt status.

SOLE PROP

Better if you need an easy set-up.

No paperwork to start; you may still need a DBA or business licenses to operate legally.

One owner max.

You're personally on the hook for business liabilities.

Taxed once—you pay on profits in your personal tax return.

Less hassle; separate tax return not needed.

No personal liability protection.