Select Your Business Entity Type to Get Started
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.
Business Entities that May Need an EIN (Tax ID)
A sole proprietorship is the only kind of business entity that you don’t have to form with the state. It is a simple entity primarily used by entrepreneurs and freelancers.
A partnership is an arrangement between two or more individuals to create and manage a business. There are many types of partnerships, run in a variety of ways.
A corporation is popular as it offers liability protection, as well as separates the business owner and business as taxable entities.
Limited Liability Company (LLC)
LLCs are the most common business entity in the U.S., offering flexibility, limited liability protection, and taxation advantages.
A type of corporation that draws its name from Subsection S of the tax code. It has all the features of a corporation, but also functions as a pass-through entity for taxation purposes.
A type of legal entity in which an individual can place their assets so that they can be passed down to beneficiaries in the future.
An estate is the sum of any assets left by a deceased individual. That includes things like property, vehicles, and valuables. The will of said individual will determine the administrator of their estate.
Personal Service Corporation
A PSC is a subset of corporations that provides services specifically to individuals. These can include professions like healthcare, law, finance, and more.
This entity is used by charities who donate their revenue to a specific goal or cause with the goal of benefiting the public instead of generating profit.
A form of nonprofit that is specifically for religious organizations. And though it is called a “church organization,” it also includes places of worship such as mosques, temples, and synagogues.