Choose a California Business Structure San Diego

Most Popular California Business Structures San Diego

Entity: Sole Proprietorship LLC Corporation S-Corp
Limited Liability? No Yes Yes Yes
Passive Investors? No Yes Yes Yes
Pass Through Taxation? Yes Yes No Yes
Sole Owner Allowed? Yes Yes Yes Yes
Subject to Min Franchise Tax? No Yes Yes Yes

California Business Structures Available to Licensed Professionals San Diego

Entity: Sole Proprietorship General Partnership Limited Liability Partnership* Professional Corporation
Limited Liability? No No Yes, Among Partners Yes
Passive Investors? No No No Yes, If Licensed
Pass Through Taxation? Yes Yes Yes If S Election Made
Sole Owner Allowed? Yes No No Yes
Subject to Min Franchise Tax? No No Yes Yes

* Only available for licensed professionals practicing law, accounting, and architecture.

California Nonprofit and Hybrid Business Structures San Diego

Entity: Nonprofit Corporation Tax Exempt* Nonprofit Benefit Corporation Flexible Purpose Corporation
Limited Liability? Yes Yes Yes Yes
Passive Investors? No Investors No Investors Yes Yes
Pass Through Taxation? No No No No
Sole Owner Allowed? No No No Yes
Subject to Min Franchise Tax? Yes No Yes Yes

* Not all nonprofit corporations are tax exempt. Tax exemption, such as 501(c)(3) status, may be obtained federally and with each state.

California Sole Proprietorship and Partnership Business Structures San Diego

Entity: Sole Proprietorship General Partnership Limited Partnership Limited Liability Partnership
Limited Liability? No No For Limited Partners Yes, Among Partners
Passive Investors? No No Yes No
Pass Through Taxation? Yes Yes Yes Yes
Sole Owner Allowed? No No No No
Subject to Min Franchise Tax? No No Yes Yes