Tulsa Oklahoma
9175 S. Yale, Suite 300
Tulsa, OK 74137
E -mail: Contact Us
Phone: 918-494-7900
 

 

Sole Proprietorship
 
  Formation:
  No state filing required, a DBA should be filed.
  Duration of Existence:
  Dissolved if sole proprietor ceases doing business or dies
  Liability:
  Sole proprietor has unlimited liability
  Operational Requirements:
  Relatively few legal requirements
  Management:
  Sole proprietor has full control of management and operations
  Taxation:
  Not taxable entity. Sole proprietor pays all taxes
  Pay Through Income/Loss :
  Yes
  Double Taxation :
  No
  Cost of Creation:
  Limited
  Raising Capital:
  Often difficult unless individual contributes funds
  Transferability of Interest :
  No
   
 
General Partnership
 
  Formation:
  Agreement between two or more parties. A DBA should be filed.
  Duration of Existence:
  Dissolves upon death or withdrawal of a partner unless safeguards are specified in a partnership agreement
  Liability:
  Partners have unlimited liability
  Operational Requirements:
  Relatively few legal requirements
  Management:
  Typically each partner has an equal voice, unless otherwise arranged
  Taxation:
  Each partner pays tax on his/her share of income and can deduct losses against other sources of income.
  Pay Through Income/Loss :
  Yes
  Double Taxation :
  No
  Cost of Creation:
  Limited
  Raising Capital:
  Contributions can be made from partners, and more partners can be added
  Transferability of Interest :
  No
   
 
C Corporation
 
  Formation:
  State filing required
  Duration of Existence:
  Perpetual
  Liability:
  Shareholders are typically not personally liable for the debts of the corporation
  Operational Requirements:
  Board of directors, officiers, annual meetings, and annual reporting required
  Management:
  Managed by the directors, who are elected by the shareholders
  Taxation:
  Taxed at the entity level. If dividends are distributed to shareholders, dividends are also taxed at the individual level
  Pay Through Income/Loss :
  No
  Double Taxation :
  Yes, if income is distributed to shareholders in the form of dividends
  Cost of Creation:
  State filing fee required
  Raising Capital:
  Shares of stock are sold to raise capital
  Transferability of Interest :
  Shares of stock are easily transferred
   
 
S Corporation
   
  Formation:
  State filing required
  Duration of Existence:
  Perpetual
  Liability:
  Shareholders are typically not personally liable for the debts of the corporation
  Operational Requirements:
  Board of directors, officiers, annual meetings, and annual reporting required
  Management:
  Managed by the directors, who are elected by the shareholders
  Taxation:
  No tax at the entity level. Income/loss is passed through to the shareholders
  Pay Through Income/Loss :
  Yes
  Double Taxation :
  No
  Cost of Creation:
  State filing fee required
  Raising Capital:
  Shares of stock are sold to raise capital
  Transferability of Interest :
  Yes, but must observe IRS regulation on who can own stock
   
   
Limited Liability Company
   
  Formation:
  State filing required
  Duration of Existence:
  Dependent on the requirements imposed by the state of formation
  Liability:
  Members are not typically liable for the debts of the LLC
  Operational Requirements:
  Some formal requirements but less formal than corporations
  Management:
  Members have an operating agreement that outlines management
  Taxation:
  If properly structured there is no tax at the entity level. Income/loss is passed through to members
  Pay Through Income/Loss :
  Yes
  Double Taxation :
  No
  Cost of Creation:
  State filing fee required
  Raising Capital:
  Possible to sell interests, though subject to operating agreement restrictions.
  Transferability of Interest :
  Possibly, depending on restrictions outlined in the operating agreement
   
 

 

 
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