A corporation can situation shares of stock and sell percentages of the enterprise to its owners, which are named shareholders. Depending on elections created by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a disregarded entity”). In most states, however, the fee is nominal and only a handful charge a tax comparable to the tax imposed on corporations.

PLLC — A specialist limited liability organization (PLLC) is required for certain licensed business pros. Profits and losses are reported and taxed on owners’ individual returns. The corporation will also need a set of bylaws that describe in higher detail than the articles how the corporation will run, such as the responsibilities of the shareholders, directors and officers when stockholder meetings will be held and other specifics important to running the organization.

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