In good form – Getting borrowers to think outside the corporate box
Abstract: Many borrowers operate as C corporations to limit their personal liability. But sometimes the costs (such as double taxation) and hassles of incorporation outweigh the benefits. Hybrid options, however, offer the best of both worlds: limited personal liability and tax savings. This article describes the pros and cons of sole proprietorships and general and limited partnerships, along with such hybrid options as limited liability companies (LLCs), limited liability partnerships (LLPs) and S corporations. A sidebar explains why it’s sometimes beneficial to set up separate legal entities.