A corporation is an artificial person or legal entity managed by a board of directors, consisting of one or more individuals, who collectively elect officers to run the corporation’s day-to-day business activities. Generally, officers, directors, shareholders and members are not liable for the obligations of the corporation.
Corporations can be either "C" or "S" Corporation. All corporations are C corporations unless they file for S status. If you take no action, your corporation is a C corporation. The difference between the two is the way that they are taxed. C corporations pays taxes on their net income and the shareholders also pay taxes on the income that they receive from the corporation. S corporation does not pay taxes on its net income but shareholders still have to pay taxes on money that they receive from the corporation.
Limited Liability Company (LLC)
A limited liability company is an unincorporated association of one or more members who share in the profits and losses of the company’s business. A limited liability company is a separate legal entity and, generally, the members and managers are not liable for the obligations of the limited liability company.
A general partnership is an agreement of two or more people to carry on as co-owners of a business for profit. A general partnership is an entity distinct from its partners, but unless the general partnership is registered as a registered limited liability partnership each partner is liable for the obligations of the general partnership.
A limited partnership is formed by two or more persons with at least one general partner and one limited partner. The general partners exercise control over the management of the limited partnership’s business. A limited partnership is an entity distinct from its partners. Generally, the limited partners are not liable for the obligations of the limited partnership.
A sole proprietorship is an unincorporated business owned and run by one individual with no distinction between the business and the owner. The sole proprietor is entitled to all profits and is responsible for all of the business’s debts, losses and liabilities.
A Nonprofit corporation is a special type of corporation that has been organized to meet specific tax-exempt purposes. To qualify for Nonprofit status, your corporation must be formed to benefit the public, a specific group of individuals, or the membership of the Nonprofit. Forming a nonprofit corporation is very similar to forming a regular corporation, you must file articles of incorporation with your state government. But unlike regular corporations, you must also complete federal and state applications for tax exemptions.