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May 20, 2015
Do you know how an entity structure impacts your business? View this chart to see the differences between LLCs, LLPs, and Corporations.
Professional C corporation
Professional S corporation
Limited liability company (LLC) 1
Limited liability partnership (LLP)
Pass-through tax treatment
Difficult to form/maintain
Continuity of life
State law may limit LLC life to a set number of years 3
Generally yes, since members can elect a committee of managers
Generally no, but the partnership agreement can centralize somewhat
Interests freely sold/transferred
Only within specified profession(s) or specialty(ies)
Only within specified profession(s) or specialty(ies) and not to ineligible "S" shareholders
Yes, but transferee often has more limited rights, unless all other members approve sale/transfer
Available in all states
Minimum number of owners
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