Page 82 - 2023 CIDI Notebook

“You don’t have to be great

to start, but you have to

start to be great.”

- ZIG ZIGLAR

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What type of Business Should I have?

Sole Proprietorship – Also known as the sole trader, individual entrepreneurship or proprietorship, is a
type of enterprise that is owned and operated by one person. A Sole Proprietorship also has NO LEGAL
DISTINCTION between the owner and the business entity.
LLC – Limited Liability Company – Combine elements of a partnership, sole proprietorship and a
corporation to ensure that the owner(s) of the company are not personally liable for their company’s
debts and liabilities. Generally taxed the same as a Sole Proprietorship.
LLP – Limited Liability Partnership – Similar to LLC however taxed as a partnership and must have a
managing partner.
Corporations
S Corp – Owners pay personal income tax on profits. All business income/loss is passed through to
owners. No more than 100 shareholders. Shareholders must be U.S. citizens or resident aliens.
C Corp – Owners must pay personal income tax on profits. Business must pay corporate income tax.

PI BUSINESS & MARKETING BASICS
JOHN MORRIS – EVCO INVESTIGATIONS

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