GACPA Information Sheet
Business Formation — Entity Formation Strategy
A visual walkthrough of the tax-strategy differences between LLCs, S-Corps, C-Corps, and partnerships — how each is formed, how each is taxed, and when each makes sense.
Client & prospect resource
Gideon Adler & Co., CPAs has researched and created this information sheet for clients and potential clients. Read the full sheet online, or download the PDF.
Key points
- LLC — legal vs tax status; default filings by member count
- S-Corp — pass-through, reasonable comp, and self-employment tax savings
- C-Corp — double taxation, QSBS eligibility, and international appeal
- Partnership — 1065, K-1s, and special allocations
- Sole proprietor — Schedule C simplicity vs unlimited liability
- Real estate on Schedule E vs Schedule 8825