How Do C Corporations Compare to Other Business Structures?
- Sole Proprietorship: Unlike sole proprietorships, C Corporations offer limited liability protection. However, sole proprietorships are simpler and less expensive to set up and run. - Partnership: Partnerships also lack limited liability protection and are generally easier to form but do not offer the same fundraising capabilities as C Corporations. - S Corporation: An S Corporation avoids double taxation by allowing profits and losses to pass through to shareholders' personal tax returns, but it has more restrictions on ownership and stock issuance compared to a C Corporation. - LLC (Limited Liability Company): LLCs provide limited liability protection and avoid double taxation, but they may not attract the same level of investment as C Corporations.