Comparison of common entity types

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[Download the above chart comparing entity types.]

Independent consultants starting out often ask what type of entity they should use to establish their practice.

Episode 353 of Unleashed could be helpful for consultants in the U.S. who have not yet established their entity.

In this episode, Jonah Gruda reviews the most relevant aspects of the five types of entities that are most commonly considered:

  1. Sole proprietorship
  2. Partnership
  3. Limited Liability Company
  4. S-Corporation
  5. C-Corporation

For each entity type, Jonah reviews:

  1. Formation requirements
  2. Liability Exposure
  3. Taxation at the entity level
  4. Tax rates
  5. Tax reporting
  6. Compensation
  7. Number of owners
  8. Self-employment tax

Jonah Gruda is a Tax Partner at Mazars and specializes in income taxation, executive compensation and stock option planning, estate and gift planning and wealth preservation.

Jonah can be contacted through Mazars or LinkedIn. Or by email: jonah.gruda@mazarsusa.com