Sole Proprietorship:
+  Taxpayer is subject only to Induvidual Tax Rates
-   Taxpayer is exposed to business liabilities

C Corporation:
+  Liability is limited to business assets
+  Lower tax rate than the maximum induvidual tax rate
-   Distributed income taxed at corporate and induvidual rates

S  Corporation :
+  Income or loss passes through to shareholders, avoiding double taxation
+  Liability is limited to business assets
-   There are limits on electing and retaining S status

General Partnership:
+  No limit on the number of partners
+  No double taxation
+  Income or lossmay be allocated to partners in any reasonable way
-  Each partner is subject to business liability

Limited Liability Company (LLC):
 +  Liability is limited to business assets
 +  No limit to number of partners
 +  No double taxation
 +  Income or loss may be allocated to partners
 -   Taxable income may flow to the partners when there has been no cash         distributed to pay taxes

by Vincent Russo
Computer Business Systems