In nature, all life comes in two forms: plant and animal.
In the marketplace, all business entities are found in two forms: human and non-human. But unlike plants and animals, a human business can morph into a non-human entity.
A human business is a sole proprietorship or a partnership. Of the non-human species, there are three: C Corporation, Subchapter S Corporation (aka, Sub S, or S Corp) and the Limited Liability Company (LLC). All corporations begin as a C, and some, typically small businesses, “elect” to morph into the Sub S structure for reasons revealed in a minute. The LLC is the new kid on the block, only being available for about the past 30 years. It can be a very handy legal structure, but not for everyone.
So why should your human business morph to non-human? There are at least three excellent reasons: