Business Entities

Corporations, limited liability companies $($LLCs$),$ general and limited partnerships, and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules that determine how they and their owners will be taxed. Corporations and LLCs are similar in the sense that state laws protect all owners$/$members from personal legal liability. Further, corporations, LLCs$,$ and partnerships are recognized as business entities for state law purposes.

$1.$ How do business owners create legal entities? Is the process the same for all entities? If not, what are the differences?

$2.$ Did the tax law changes effective in $2018$ increase or decrease the amount of the double tax on C corporation income? Explain.