A C-corporation is the most common corporate structure. It offers a large array of benefits including increased asset protection, an unlimited number of stockholders and many tax benefits. A corporation is regulated and governed by the state where it is formed. As a business owner you need to seriously consider which state you incorporate in.

For preferred states, such as Nevada, you can take advantage of such additional benefits as:

Superior Corporate Veil
Enhanced privacy laws
No business tax
Fringe benefits

S-Corporation:

Corporations may elect to be recognized as an S Corporation after they are formed to take advantage of a special tax status with the IRS. Often small business owners choose this option if they prefer to be taxed as if they were a sole entrepreneur or partnership but still want the asset protection provided as a regular corporation.

Entrepreneurs elect for the S-corporation to help reduce self-employment taxes and avoid double taxation that occurs with regular C-Corporations. The disadvantage of S-corporations is that they don't allow for many of the fringe benefits that regular Corporation do, and there are some restrictions as to who can file for S-Corporation status.

Limited Liability Company LLC:

Although the LLC is not a corporation, it provides many of the same benefits as a corporation. This is another option that is often attractive to small businesses because it provides the limited liability benefits of a corporation with the "...pass-through taxation of a sole proprietorship or partnership." In addition, unlike a corporation, members of an LLC have the ability to control other members' ability to transfer ownership by voting power of their membership.

Last but not least, the ownership restrictions subject to S-Corporations are not applicable to the LLC making this structure ideal for foreign investors.