Types of Business Entities

Select the right legal structure for a new or growing business. This course explains the defining characteristics of sole proprietorships, general and limited partnerships, C corporations, limited liability companies, and S corporations. It analyzes the advantages, limitations, and typical use cases for each entity type. By comparing these structures in a practical framework, the course enables you to determine which form best aligns with ownership, tax, and operational objectives.
Format

PDF Course

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Duration

2 Hours

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Course Information

Author: Steven Bragg
Course Number: TX1028
IRS Program Number: 72821-T-00095-25-S

Learning Objectives
  • Specify the advantages and disadvantages of each type of business entity.
  • Identify the formulation of tax basis for the partners in a partnership.
  • Specify the tax treatment when a partner sells his or her interest in a partnership.
  • Specify what types of businesses would qualify to be a personal services corporation.
  • Recognize which expenses are considered to be start-up expenses.
  • Recall why certain business entities are allowed a dividends received deduction.
  • Recall how a business entity can lose its S corporation status.

Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Taxes
Prerequisites: None
Advance Preparation: None
Latest Review Date: July 2025
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.