When you’re starting a business, picking the right corporation type can feel like a big decision. It’s not just about the name; it’s about how you’ll handle taxes, raise money, and grow your company.

Browse Investopedia’s expert written library to learn about sole proprietorships, LLCs, S-Corp, C-Corp, and more. C corps, which offers their owners the strongest protection from personal ...

Instead, profits and losses pass through to shareholders' personal tax returns, preventing the double taxation typical of C corporations. To qualify as an S corporation, a business must meet ...

In addition, S corporations cannot be owned by C corporations, other S corporations, many trusts, LLCs or partnerships. LLCs are not subject to these restrictions. LLCs are also more flexible in ...