Comparison of Company Types

This is a comparison table that shows some of the differences between corporations, LLCs, and non-formed companies. Use this table as a reference if you're trying to figure out which one to choose. If you need more advice, feel free to contact us!

	Sole Proprietorship	Partnership	Corporation	Limited Liability Company
Management	direct control	broader	specialized	flexible
Profits go to	owner	partners	stockholders	partners
Personal liability	unlimited	unlimited	none	limited
Transfer of ownership	hard	hard	easy	hard
Continuous existence	no	no	yes	(NJ LLC's)
Legal entity	no	no	yes	yes
Raising capital	hard	easier	very easy	easier
Authority	unified	divided	board of directors	flexible
hard to find suitable partners	no	yes	no	yes
Charter restrictions	no	no	yes	no
Required record-keeping	light	light	extensive	light
Double taxation	no	no	yes	no
Start-up costs	low	low	high	high
Gov't regulation	low	low	high	high
Working capital requirements	low	low	high	high
Ease of formation	easy	easy	hard	hard