top of page
  • Writer's pictureDavid Manes

Most common ways to structure your business: advantages and disadvantages. Part Two

Below is a list of five of the most common business structures, along with some of the main advantages and disadvantages of each. This installment features the Professional Corporation, Nonprofit Corporation, Limited Liability Company, Professional Limited Liability Company and the Limited Liability Partnership.

Professional Corporation


  1. Owners have no personal liability for the negligence of other owners


  1. More expensive than a general partnership

  2. Paperwork can be burdensome

  3. All owners must be members of the same profession

Nonprofit Corporation


  1. Corporation does not pay income taxes

  2. Contributions to charitable organizations are tax deductible


  1. Tax advantages only available to groups organized for charitable, scientific, educational, literary or religious purposes

Limited Liability Company (LLC)


  1. Owners have limited personal liability for business debts even if they participate in management

  2. You can choose between being taxed as a partnership or a corporation


  1. More expensive to create than a partnership

Professional Limited Liability Company


  1. Same advantages as a regular limited liability company

  2. Gives state licensed professionals a way to enjoy the benefits of an LLC


  1. Same as a regular LLC

  2. All owners must be members of the same profession

Limited Liability Partnership


  1. Geared towards those in older professions such as law, medicine and accounting

  2. Owners are not liable for professional negligence of other partners

  3. Owners report their share of profit or loss on their own tax returns


  1. Owners remain liable for debts of other members if they fall outside the scope of the members personal practice i.e., landlord or creditor debts

  2. Not available in all states

  3. Limited number of professions may participate[1]


[1] Fred S. Steingold, Legal Guide for Starting and Running a Small Business 5 (Betsy Simmons ed., Nolo 10th ed. 2008).

0 views0 comments

Recent Posts

See All

KM&A Files Lawsuit Against Eaton Corporation

FOR IMMEDIATE RELEASE February 1, 2015 Kraemer, Manes & Associates, LLC “KM&A” has filed a complaint against Eaton Corporation in the Allegheny County Court of Common Pleas, Arbitration Division.  The


Good Logo.png

Our firm has over 10 years of experience providing world-class legal representation to those who need it. We help employees, entrepreneurs, businesses, and individuals. Based out of Pittsburgh, we work with clients across Pennsylvania.  See what our clients say about us:


"They kept me up to date on all aspects of the case

and were attentive to my needs."

- Donald Bryan


One of our attorneys will review your case within 24 hours,

and we will contact you to discuss further. 

You can also call us directly at (412) 626-5626

Thanks for contacting us! We will be in touch soon

bottom of page