Sole Proprietorship - A sole proprietorship is an unincorporated business that is owned by one person or by a husband and wife. You include the income expenses of the business on your own tax return. We must have the owner’s name, home address, Social Security number, and drivers license number.
Partnership - A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill and expects to share in the profits and losses of the business. A partnership is not taxable on the income of the entity. Each partner includes his or her share of the partnerships income or loss on his or her tax return. We require a Federal Tax ID number.
Limited Liability Company - A Limited Liability Company ("LLC") combines traditional corporate and partnership characteristics.
Corporation - In forming a corporation, prospective shareholders transfer money, property, or both for the corporation’s capital stock. The profit of a corporation is taxed to both the corporation and the shareholders when the profit is distributed as dividends. In California, the Secretary of State stamps the number only on the original articles of Incorporation.
For more information regarding ownership please visit the
Franchise Tax Board website.
