To avoid double tax and limit my liability, which entity should I choose?

If you don’t select to function as a corporation, the following business types will avoid both double taxes on profits, and limit liability: LLPs, LLCs, and limited partnerships (but only for the limited partners). Depending on your state’s laws, an S Corporation may be another option. If you are the sole owner, the only option may be an S Corp or a single-member LLC. Check with our office and/or your attorney before forming a new entity.