Similarities Overview Separate Legal entities- Both entity types are separate legal entities from its owners/shareholders. This is accomplished through the filing of the entity with the proper state organization. Limited Liability Protection- Both entity types limit your personal liability to no more than that of the original investment. Corporate Management Structure- Three components makeup both entity types: shareholders, directors and officers. Transfer of Ownership- Both entity types make transferring ownership easy through the sale of stock. Business Maintenance- Both entity types have the same business maintenance requirements. This includes: holding and documenting an initial meeting, holding and documenting annual meetings and issuing shares of stock. Perpetual Business Life- Both entity types’ existence is perpetual. Meaning: Dissolution paperwork must be filed with the proper state authority in order to dissolve the corporation. Self-Employment Tax Savings- Both entity types’ business expenses are frequently tax-deductible.