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All Entity Types

Choose the right business structure for your needs

17 types available

Side-by-Side Comparison

Quick overview of key differences between entity structures

Structure Liability Taxation Complexity Ownership Best For
C Corporation β€” β€” β€” β€” β€”
Corporation β€” β€” β€” β€” β€”
Extra-Provincial Registration β€” β€” β€” β€” β€”
Foreign Qualification β€” β€” β€” β€” β€”
Limited Liability Company Complete Personal Shield Protection Flexible (Pass-Through or Corporate Election) Low to Medium Members (owners), flexible structure Small Businesses & Startups
Partnership β€” β€” β€” β€” β€”
Partnership β€” β€” β€” β€” β€”
Persona FΓ­sica con Actividad Empresarial β€” β€” β€” β€” β€”
Professional LLC β€” β€” β€” β€” β€”
S Corporation Standard Corporate Shield Safeguards Pass-Through (With Payroll Optimization Options) Medium to High Shareholders with restrictions Profitable Small Businesses
Sociedad AnΓ³nima de Capital Variable β€” β€” β€” β€” β€”
Sociedad AnΓ³nima Promotora de InversiΓ³n β€” β€” β€” β€” β€”
Sociedad Civil β€” β€” β€” β€” β€”
Sociedad de Responsabilidad Limitada β€” β€” β€” β€” β€”
Sole Proprietorship β€” β€” β€” β€” β€”
Sole Proprietorship β€” β€” β€” β€” β€”
Unlimited Liability Corporation β€” β€” β€” β€” β€”

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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