<-Back to Bookkeeping
<-Back to Trucking

Sole-Proprietorship

  • Income is taxed on your personal return at your tax rate.
  • Not required to file annual reports.
  • Maintained and operated by one person.

Partnership

  • Income is taxed on each partner’s personal return at their tax rate. (Income is split by a pre-determined percentage per person.)
  • Legal liability is limited for an RLLP.
  • Not required to file annual reports (unless RLLP).
  • Managed by partners.
  • Should have an operating agreement (consult attorney).

C-Corporation

  • Only the corporation is responsible for the company’s debts (unless an owner signs a personal guarantee).
  • Unlimited number of shareholders (but can be a single person).
  • Taxed at corporate level and the shareholders are taxed on any distributions at the personal level as well.

S-Corporation

  • Only the corporation is responsible for the company’s debts (unless an owner signs a personal guarantee).
  • Maximum of 100 stockholders.
  • Managed by directors that are appointed by stockholders (can be a single person).
  • Income is taxed on shareholders’ personal returns.
  • Should have by-laws (consult attorney).

LLC

  • Can elect to be treated as any of the above for tax purposes.
    • Will be automatically treated as a sole-proprietorship if owned by a single person and no other option is elected.
    • Will be automatically treated as a partnership if owned by more than one person and no other option is elected.
  • Not required to file annual reports.
  • Should be run by members (can be a single member).
  • Should have an operating agreement (consult attorney).

<-Back to Trucking
<-Back to Bookkeeping