Choice of Entity

The purpose of this program is to assist each member in evaluating his or her business entity and future business entities. The selection of which type of entity to conduct business is a basic, but at the same time, the most critical business decision that each owner must make.

Often times the entity selection process is very limited and does not include relevant facts and considerations. The business owner has five basic business entities from which to choose: Sole Proprietorship, Partnership, C Corporation, S Corporation, and Limited Liability Company (LLC).

The following outline presents a basic overview and considerations of these five entities. In particular, the following attributes of each entity will be discussed: Formation of the Entity, Taxation, Compensation, Transactions with Owners, and Termination of the Entity or Owner Interest.