Business Formation

A partnership is a business in which two or more people agree to share ownership and management responsibility for a business. Often partners get together due to complementary skills. If you pick your partners for their skills, you may split responsibilities among the partners. You no longer have to be good at every aspect of the business, but may divide the duties according to each partners' expertise. Some benefits of forming a Partnership are it is easier to raise capital in a partnership than a sole proprietorship. You no longer have to depend solely on your borrowing power you also have the borrowing capability of your partner(s). In this way it is much easier to grow your business. By sharing in the profits, partners generally work harder and strive for success. You no longer have to depend on only your drive to succeed.

Just as in a sole proprietorship, partners are still responsible for unlimited liability, both personal and business. Therefore, everything you own is at risk. Also, you cannot make certain important business decisions without the agreement of the partner. A general partnership offers few tax benefits to business owners.

A single member LLC files as a disregarded entity on a Schedule C. It does not file as a Form 1065 Partnership tax return.

No. There is no limit on the number of owners (members) for a LLC or a Limited partnership or a C Corporation. There are limits for S Corporations and Sole Proprietorships.

No. There are no citizen requirements for LLC's, Limited partnerships, Sole Proprietorships or S Corporations. There are citizen requirements for S Corporations.

Yes, An LLC and a C Corporation may be owned by another business instead of individuals. S Corporations, Limited parnerships and Sole Proprietorships cannot be owned by other businesses.

A LLC similar to S Corporations, Limited partnerships and Sole Proprietorships report theor profit or losses on there personal tax returns.

None of the shareholders can be nonresident aliens.

An S corporation can have no more than 75 shareholders. None of the shareholders can be nonresident aliens.