All Entity Types
Choose the right business structure for your needs
C Corporation
Learn about C Corporation formation, requirements, and compliance.
Corporation
Learn about Corporation formation, requirements, and compliance.
Extra-Provincial Registration
Learn about Extra-Provincial Registration formation, requirements, and compliance.
Foreign Qualification
Learn about Foreign Qualification formation, requirements, and compliance.
Limited Liability Company
Flexible business structure combining liability protection and pass-through taxation
Partnership
Learn about Partnership formation, requirements, and compliance.
Partnership
Learn about Partnership formation, requirements, and compliance.
Persona Física con Actividad Empresarial
Learn about Persona Física con Actividad Empresarial formation, requirements, and compliance.
Professional LLC
Learn about Professional LLC formation, requirements, and compliance.
S Corporation
Tax election allowing pass-through taxation with payroll tax optimization
Sociedad Anónima de Capital Variable
Learn about Sociedad Anónima de Capital Variable formation, requirements, and compliance.
Sociedad Anónima Promotora de Inversión
Learn about Sociedad Anónima Promotora de Inversión formation, requirements, and compliance.
Side-by-Side Comparison
Quick overview of key differences between entity structures
| Structure | Liability | Taxation | Complexity | Ownership | Best For |
|---|---|---|---|---|---|
| C Corporation | — | — | — | — | — |
| Corporation | — | — | — | — | — |
| Extra-Provincial Registration | — | — | — | — | — |
| Foreign Qualification | — | — | — | — | — |
| Limited Liability Company | Complete Personal Shield Protection | Flexible (Pass-Through or Corporate Election) | Low to Medium | Members (owners), flexible structure | Small Businesses & Startups |
| Partnership | — | — | — | — | — |
| Partnership | — | — | — | — | — |
| Persona Física con Actividad Empresarial | — | — | — | — | — |
| Professional LLC | — | — | — | — | — |
| S Corporation | Standard Corporate Shield Safeguards | Pass-Through (With Payroll Optimization Options) | Medium to High | Shareholders with restrictions | Profitable Small Businesses |
| Sociedad Anónima de Capital Variable | — | — | — | — | — |
| Sociedad Anónima Promotora de Inversión | — | — | — | — | — |
| Sociedad Civil | — | — | — | — | — |
| Sociedad de Responsabilidad Limitada | — | — | — | — | — |
| Sole Proprietorship | — | — | — | — | — |
| Sole Proprietorship | — | — | — | — | — |
| Unlimited Liability Corporation | — | — | — | — | — |
How to Choose the Right Entity Type
Consider these factors when deciding which business structure fits your needs
Liability Protection
Determine how much personal asset protection you need. LLCs and Corporations offer strong liability shields, while Sole Props offer none.
Tax Implications
Pass-through entities like LLCs and S Corps avoid double taxation, while C Corps pay corporate taxes. Consider your profit expectations.
Growth & Funding
If you plan to raise venture capital or go public, a C Corporation is typically required. LLCs work best for bootstrapped or lifestyle businesses.
Administrative Burden
Consider ongoing compliance costs. LLCs have fewer requirements than Corporations, but both need annual reports, agent services, and record-keeping.
Frequently Asked Questions
Common questions about business entity types
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