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Chart of Entity Comparison Sole Proprietor Partnership C Corporation S Corporation LLC Legal Status Same entity as owner Separate entity from owner Separate entity from

Chart of Entity Comparison

Sole Proprietor Partnership C Corporation S Corporation LLC
Legal Status Same entity as owner Separate entity from owner Separate entity from owner Separate entity from owner Separate entity from owner
Tax Year Same as owner Majority interest rules; principal partner rules; or the least aggregate deferral of income rule; exceptions may be the business purpose of 444 election Calendar or fiscal year Calendar year; 444 election; or business purpose demonstrated Depends on tax status as sole proprietorship, partnership, or corporation
Self-employment Tax Yes Yes if general partner, generally no if limited partner No, since payment for services is in the form of wages No, since payment for services is in the form of wages Depends on tax status as sole proprietorship, partnership, or corporation
Charitable Contributions Generally 50% limitation Generally 50% limitation at partner level Generally 10% limitation Generally 50% limitation at shareholder level Depends on tax status as sole proprietorship, partnership or corporation
Management Owner May be divided among partners Board of Directors Board of Directors Per articles of organization
Number of Owners One Unlimited Unlimited 100 Depends on tax status as sole proprietorship, partnership, or corporation

Question:

Choose four characteristics (Rows) and describe how two of the entity selections options differ (e.g. Basis Decrease from Operations in Sole Proprietor vs. C Corporation)

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