The choice of business structure is one of the most important decisions a business owner can make. Different types of business structures have different benefits and drawbacks, and understanding the differences between them can help you decide which structure is right for your business. C Corps, LLCs, S Corps, and DBAs (Doing Business As) are some of the most popular business structures, each with their own advantages and disadvantages.

A C Corporation, or C Corp, is a traditional and popular business structure. C Corps are owned by shareholders and managed by a board of directors. C Corps are separate and distinct from their owners, meaning that owners are not personally liable for any debts or liabilities of the corporation. This provides a level of protection from legal liability, making the C Corp structure attractive for businesses that face significant legal or financial risks. However, C Corps may also be subject to double taxation, since the corporation pays taxes on its profits and the shareholders must also pay taxes on their personal income from the profits.

An LLC, or Limited Liability Company, is another popular business structure. LLCs offer the same liability protection as C Corps, but with more flexibility in how the business is managed. Owners of LLCs are not personally liable for any debts or liabilities of the company, and can decide on how to structure their business’s management. LLCs are also not subject to double taxation, making them attractive for businesses seeking to minimize their tax burden.

An S Corporation, or S Corp, is another popular business structure. Like a C Corp, an S Corp is owned by shareholders and managed by a board of directors. However, unlike C Corps, S Corps are not subject to double taxation. S Corps also have more restrictions than C Corps or LLCs in terms of ownership and taxation, so they may not be the best choice for some businesses.

Lastly, a DBA (Doing Business As) is a business structure that allows an individual or business to operate under a different name. A DBA is not a separate legal entity, and does not provide any legal protection for its owners. This means that if the business gets sued, the owner is personally liable for any debts or liabilities of the business. This lack of protection makes the DBA structure unattractive for businesses that face significant legal risks, such as those involved in healthcare, finance, or technology.

In summary, each type of business structure has its own advantages and drawbacks, so it is important to understand the differences between them before making a decision. C Corps offer protection from legal liability but may be subject to double taxation. LLCs provide the same liability protection with more flexibility in how the business is managed, but are not subject to double taxation. S Corps are not subject to double taxation and have fewer restrictions than C Corps or LLCs, but may not be the best choice for some businesses. Lastly, a DBA does not provide any legal protection for its owners, making it unattractive for businesses that face significant legal risks.