|
| 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
|
