Few legal requirements. Some requirements, but less than corporations. Board of directors, officers, annual meetings, and annual reports. Board of directors, officers, annual meetings, and annual reports. Entity Management Characteristics Sole proprietor is the manager and operator.
Partners generally have equal voice.
Members agree to the form of management by either members or hired management. A corporation is managed by the officers and the board of directors, the directors being elected by the shareholders, and the officers being appointed by the directors. A corporation is managed by the officers and the board of directors, the directors being elected by the shareholders, and the officers being appointed by the directors. There is no taxable entity. The sole proprietor pays taxes in the form of income taxes.