US entity types, briefly.

The simplest US business structure. Owned and operated by one person; no separate entity. You report business income on your personal return (Schedule C).

Limited Liability Company. Combines the liability protection of a corporation with the tax flexibility of a partnership. The default federal tax treatment is disregarded entity (single-member) or partnership (multi-member), with an option to elect C-corp or S-corp.

A separate legal entity owned by shareholders. Subject to corporate income tax. Required for many venture-backed startups and companies planning to issue multiple classes of stock.

A tax election, not a separate entity type. Profits and losses pass through to shareholders’ personal returns, avoiding double taxation, while preserving corporate structure.

Two or more owners carrying on a business for profit. Income flows through to partners on Schedule K-1. The entity itself generally does not pay federal income tax.

A tax-exempt organization under section 501(c) of the Internal Revenue Code. Recognized by the IRS after filing Form 1023 (or 1023-EZ) and meeting the relevant operational and organizational tests.

A fiduciary arrangement where a trustee holds title to property for the benefit of beneficiaries. Some trusts need an EIN to open bank or brokerage accounts and to file Form 1041.

A legal entity created upon a person’s death to hold and distribute assets. Requires an EIN to open an estate bank account, file Form 1041, and manage probate-related tax filings.