|
Professional C corporation |
Professional S corporation |
Limited liability company (LLC)
1
|
Limited liability partnership
(LLP)
|
Limited liability |
Yes
2
|
Yes
|
Yes
|
Yes
|
Pass-through tax treatment |
No
|
Yes
|
Yes
|
Yes
|
Difficult to form/maintain |
Yes
|
Yes
|
Somewhat |
Somewhat |
Continuity of life
|
Yes
|
Yes
|
State law may limit LLC life to
a set number of years
3
|
No
|
Centralized management |
Yes
|
Yes
|
Generally yes, since members can
elect a committee of managers
|
Generally no, but the
partnership agreement can centralize
somewhat
|
Interests freely sold/transferred
|
Only within specified
profession(s) or specialty(ies) |
Only within specified
profession(s) or specialty(ies) and not to
ineligible "S" shareholders |
Yes, but transferee
often has more limited rights, unless all other
members approve sale/transfer |
No
|
Available in all states |
Yes
|
Yes
|
Yes
|
No
|
Minimum number of owners |
One
|
One
|
Generally two
|
Two
|