Different Types of Corporate Structure Explained

Different Types of Corporate Structure Explained

The secret to a successful company or business is to have a defined structure. To a larger extent, the organizational structure determines the company’s functionality. In this case, how you outline the company’s hierarchy is important. Meeting your short and long-term objectives is easy by understanding what corporate structure entails. This guide explains more.

Limited Liability Corporation (LLC)

If you are looking for a fantastic corporate structure for your business or organization, an LLC should be on the list. With this organizational structure, an entrepreneur gets personal protection from operational issues such as lawsuits. The structure also allows the company to reserve a business name and create a lasting formal brand.

A Partnership Agreement

A partnership agreement structure gets formed when two or more people or companies join together to run and manage a business. In this corporate structure, each partner has equal rights to share in the profits and losses of the business. The partnership includes liability for financial debt, obligations, and actions of every party involved. The written agreement solidifies the agreement.

Sole Proprietorship

A sole proprietorship is the common form of corporate structure that business owners employ. You have total control over the company’s operations as the business owner. Besides full responsibility for record-keeping and paying taxes, this structure allows the owner to determine the company’s future. Individual consulting firms, home-based businesses, and shops can utilize this structure.


Those using the organization’s services and resources can use this corporate structure for their operations and benefits. In this structure, members enjoy the profits from the cooperative. This structure allows the organization to have a board of directors and officers that run and manage the cooperative. You can become a member of the cooperative by buying shares.

C Corp

A legal entity that separates from its owners gets termed a C corp. These entities get held legally liable, get taxed, and make a profit. Unlike other structures, a corporate structure offers protection to its holders. This is from liability and other issues that might affect smooth business operations. With this structure, the company might require better record-keeping, reporting, and operational processes to succeed.

S Corp

An S corporation suits small business owners that seek to reorganize their operations, get asset protection, and save on taxes. With this corporate structure, the liability does not lie with shareholders or officers in the organization. You also enjoy self-employment tax exemption by employing this structure in your company.

Learning the types of corporate structure is one way to direct your business or company to success. At Brightview Commercial Capital, we provide potential financial solutions to potential business owners. Contact us today to learn more about how we can help!