Owned by a single person and easily established, a sole proprietorship provides no differentiation or protection between the personal and business assets of the owner.
Establishing and maintaining a sole proprietorship can be fairly easy to do, as business income is included in the owner’s personal income tax return. 
With no protection between personal and business assets, owners become personally liable for their business’s financial obligations.
Easy setup and direct control could make a sole proprietorship ideal for small business owners who can afford the financial risks.
Partnerships have many of the same advantages as a sole proprietorship, but risk towards personal assets is now shared.
Ownership of the business and its actions are also shared, limiting individual control of the business.
Smaller groups of similar or complementary professionals looking for the advantages of a sole proprietorship, while sharing liability and business direction.
LIMITED LIABILITY COMPANY (LLC)
Unlike a sole proprietorship or partnership, an LLC provides owners with protection between personal and business assets.
Only certain states allow LLCs, limiting the opportunity to create one depending on where your business operates. 
Businesses that are looking for similar asset protection to a corporation without the same taxes.
Full personal protection, the ability to generate funds through the sale of stocks and potential tax advantages gives C-Corporations the support to operate for years to come.
C-Corps are taxed on their profits, which can then be taxed again as personal income tax when shareholders receive their dividends, resulting in a double-taxing. 
Great for the long-term growth and sustainability of a business, while protecting the owner from personal liability.
Owners can enjoy the liability protection of a C-Corporation without the same double-tax issues.
S-Corporations are not able to tap into some of the tax advantages of a C-Corporation and are required to have no more than 100 shareholders, all of which must be U.S. citizens. 
If the extra requirements are worth it, then businesses can gain most of the benefits of a C-Corporation while avoiding the double-tax issue.
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This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.