Business entity types and how they appear in state records
Short answer: only entities created by a state filing appear in a business entity search: LLCs, corporations, limited partnerships, LLPs, nonprofits and cooperatives. Sole proprietors and most general partnerships do not, so a missing record does not always mean a business is fake.
The common structures compared
| Structure | State filing that creates it | In the state search? | Liability | Default federal tax |
|---|---|---|---|---|
| Sole proprietorship | No state filing; a DBA if using another name | No | Owner personally liable | Owner's return (Schedule C) |
| General partnership | Usually none; some states offer an optional statement | Rarely | Partners personally liable | Partnership return, income passes to partners |
| Limited partnership (LP) | Certificate of limited partnership | Yes | General partner liable; limited partners to their investment | Pass-through |
| Limited liability partnership (LLP) | Statement of qualification or registration | Yes | Partners shielded from other partners' acts | Pass-through |
| LLC | Articles of organization or certificate of formation | Yes | Members shielded | Pass-through by default; can elect corporate tax |
| C corporation | Articles or certificate of incorporation | Yes | Shareholders shielded | Corporate tax, then tax on dividends |
| S corporation | Same state filing as any corporation or LLC | Yes, as a corporation or LLC | Shareholders shielded | IRS election (Form 2553); pass-through |
| Nonprofit corporation | Articles of incorporation under nonprofit law | Yes | Directors and members shielded | Exempt only if the IRS grants it |
| Cooperative | Articles under the state cooperative statute | Yes, in most states | Members shielded | Subchapter T for most co-ops |
Reading the entity type on a search result
State records describe the legal structure, never the tax status. "S corporation" does not appear on any state record, because it is an IRS election; an LLC and a corporation can both be S corporations. Labels you will see include:
- Domestic or foreign: formed in this state, or formed elsewhere and registered here. See domestic entity and foreign entity.
- Professional corporation or PLLC: an entity limited to licensed professionals such as doctors or lawyers.
- Series LLC: one LLC with separate series inside it; Illinois and Delaware list each registered series as its own record.
- Benefit corporation or public benefit corporation: a for-profit corporation with a stated public purpose in its charter.
- Nonstock corporation: Virginia's and some other states' term for a nonprofit-style corporation; see nonprofit corporation.
When the business is not in the search
If a business you deal with has no state record, it is probably a sole proprietor or general partnership trading under a DBA. That is legal, but it means the owner, not a company, is your counterparty. Ask for the owner's legal name on the contract, and check the trade name where the state or county records it; see DBA. Before you pay any business, run the verification checklist.
Entity type questions
What is the most common business entity type?
LLCs are the most common new filings in most states, because they combine liability protection with simple taxes and paperwork.
Is a sole proprietorship listed in the state business search?
Usually not. A sole proprietor has no entity to register; at most a DBA is filed with the state or county.
What is the difference between an LLC and a corporation in state records?
An LLC files articles of organization and is run by members or managers; a corporation files articles of incorporation and lists directors and officers. Both show status, agent and filing history.
Is an S corporation a separate entity type?
No. S corporation is an IRS tax election made by a corporation or LLC. State records show the underlying corporation or LLC.
Sources
- SBA, Choose a business structure
- IRS, Business structures
- IRS, S corporations
- 26 U.S.C. 1381, cooperatives under Subchapter T (Cornell LII)
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