Having some type of business entity is required when applying for an Employer Identification Number. If you’re confused about your entity type,
read below to learn more.
A sole proprietorship is a straightforward business structure that doesn't require state registration. It's commonly used by freelancers and individual entrepreneurs.
Partnerships
A partnership involves two or more people collaborating to establish and operate a business. Partnerships can vary in structure and operational methods.
Corporations
Corporations are well-liked for their liability protection features. They also distinguish the business owner from the business itself in terms of taxation.
Limited Liability Company (LLC)
LLCs are the most prevalent business structure in the United States. They offer a mix of flexibility, limited liability, and tax benefits.
S-Corporations
Named after Subsection S of the tax code, an S-Corporation combines the characteristics of a corporation with pass-through taxation.
Trusts
Trusts are legal structures that allow individuals to secure their assets for future distribution to beneficiaries.
Estate
An estate comprises all assets left behind by a deceased individual, including property, vehicles, and valuables. The deceased person's will usually designates an estate administrator.
Personal Service Corporation
A PSC is a specialized type of corporation that offers services directly to individuals. These services can range from healthcare and law to finance.
Nonprofit Organization
Nonprofits are entities that allocate their revenue towards a specific mission or cause, aiming to benefit the public rather than make a profit.
Church Organization
This is a nonprofit entity tailored for religious institutions. It encompasses various places of worship, including mosques, temples, and synagogues.