Select an "X" for the entities or business forms that carry the disadvantages listed when doing business as that type of entity. (If the entity or business form does not create the disadvantage listed, leave the input field blank. For LLCs and LLPs, assume that the entity has two or more owners and has not elected to be treated as a corporation.)

Disadvantages	LLC	LLP	Partnership	S Corp	C Corp	Sole proprietor
Double taxation of income results when the entity distributes dividends to shareholders or, effectively, when shareholders sell their stock.
Generally cannot defer income by choosing a fiscal year other than a calendar year unless it can establish a legitimate business purpose for a fiscal year or unless it makes a special election.
Certain nontaxable fringe benefits generally are not available.
Capital losses confer no tax benefit to the owners in the year the entity incurs them.
Must use the same accounting period for business and personal purposes.
All profits are taxed to the owner(s)/partner(s) and/or shareholder(s) when earned, even if not distributed.
Must pay the full amount of Social Security taxes on wages because the owner is not considered to be an employee of the business.