Texas Entity Comparison Chart

	Limited Liability Company	Corporation	S Corporation	Limited Partnership
Liability	Members typically are not personally liable for the LLC obligations or debts. Additionally, multi-member LLCs are protected from outside liability of the other members	Shareholders typically are not personally liable for the corporation obligations or debts	Shareholders typically are not personally liable for the corporation obligations or debts	Limited partners are typically not liable for partnership obligations or debts as long as they do not participate in the control of the partnership
Duration of Existence	Perpetual, unless otherwise provided in the governing documents	Perpetual, unless otherwise provided in the governing documents	Perpetual, unless otherwise provided in the governing documents	Perpetual, unless otherwise provided in the governing documents
Number of Owners	Single Member LLC’s permitted in Texas	No Restrictions	No more than 100	Minimum of 2
Management	An operating agreement outlines management	Managed by the directors, who are elected by the shareholders	Managed by the directors, who are elected by the shareholders	Managed by the General Partner
Taxation	At the default tax status, there is no tax at the entity level. Income/loss is passed through to members	Taxed at the entity level. Dividends paid out are taxed at the individual level	No tax at the entity level. Income/loss is passed through to the shareholders	At the default tax status, there is no tax at the entity level. Income/loss is passed through to partners
Pass Through Income/Loss	Yes	No	Yes	Yes
Double Taxation	No	Yes, if income is distributed to shareholders in the form of dividends.	No	No
Raising Capital	Possible to sell interests, though subject to operating agreement restrictions	Shares of stock are sold to raise capital	Shares of stock are sold to raise capital	Possible to sell interests, though subject to partnership agreement restrictions
Transferability of Interest	Possibly, depending on restrictions outlined in the operating agreement	Shares of stock are easily transferred	Yes, but must observe IRS regulations on who can own stock	Possibly, depending on restrictions outlined in the partnership agreement