LLC

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent. These owners are referred to as members.

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Wisconsin Link:

https://www.revenue.wi.gov/Pages/Businesses/New-Business-home.aspx

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Pros

• LLCs offer liability protection for the owners

• They’re one of the easiest business entities to set up

• You can have a single-member LLC

Cons

• You may be required to file additional paperwork with your state on a regular basis

• LLCs can’t issue stock

• You’ll need to pay annual filing fees to your state

LLP

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

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Pros

• Partners have limited liability for the debts and actions of the LLP

• LLPs are easy to form and don’t require much paperwork

• There’s no limit to the number of partners in an LLP

Cons

• Partners are required to actively take part in the business

• LLPs can’t issue stock

• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship. The company and the owner are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

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Pros

• Sole proprietorships are easy to form

• There’s no need to file additional paperwork with your state

• You’re in complete control of the business

Cons

• You’re personally liable for all business debts

• It can be difficult to raise money for a sole proprietorship

• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C-corporation (C-corp) or an S-corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies usually choose Corporations. 

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Pros

• Corporations offer liability protection for the owners

• The life span of a corporation is not limited

• A corporation can have an unlimited number of shareholders

Cons

• Corporations are subject to double taxation

• They’re more expensive and complicated to set up than other business structures

• The shareholders may have limited liability

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Visit the link below for the State of Wisconsin's Business Structure Set Up. 

https://onestop.wi.gov/OpenMyBusiness

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