What are the types of corporate entities?

In North Carolina, there are several types of corporate entities. These include: • Limited Liability Company (LLC): An LLC is a popular business structure where the owners’ liabilities are generally limited to their investment in the company. It offers the advantages of both a corporation and a partnership while providing personal asset protection and ease of formation. • Corporation: A corporation is an independent legal entity separate from its owners. The business is owned by shareholders who have limited liability. Corporations are taxed separately from their owners and can exist in perpetuity. • Professional Corporation: A professional corporation is a business entity created to provide professional services, such as accounting, legal, or medical services. Corporation income is taxed at the corporate level and profits or losses are passed through to its owners. • Limited Partnership (LP): A limited partnership is composed of one or more general partners who manage the business and one or more limited partners who are only liable to the extent of their investments. • General Partnership (GP): A general partnership is an unincorporated business composed of two or more persons who share in the profits and losses. All partners are liable for all debts and obligations of the partnership. No matter which type of corporate entity is chosen, the North Carolina Secretary of State must be notified of the creation of any new business entity. Additionally, the chosen corporate structure must be registered with the North Carolina Secretary of State.

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What are the types of corporate entities?

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