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Business types, explained simply

01

LLC

A limited liability company is a state business structure. Its tax treatment can vary with ownership and elections. The letters after the business name do not tell the whole tax story.

02

Corporation

A corporation has a different ownership and governance structure. Consider how decisions, ownership and future funding will work before choosing.

03

S corporation

S corporation status is a federal tax election for eligible entities. It is not an automatic saving or a separate state business formation. Suitability requires a review.

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OFFICIAL REFERENCES

IRS: Business structures

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