Business Services

VyStar is committed to helping our local entrepreneurs start new businesses and grow existing ones. No matter how basic or complex your business financial needs we have the right solution for your business strategy. Our business deposits, lending, investment and support services are uniquely designed for the small business owner. In addition, VyStar provides an experienced Business Relationship team to assist you with the day to day banking needs so you can dedicate more time to running your business.

What are some of the common business types?

Business Type	General Description	General Liability of Owner(s)	What are a few of the benefits?	General Tax Information
Sole Proprietorship	A business entity which has no separate existence from its owner, which is generally one individual. Can do business in another name (for example: Johnny's Lawn Service). Business dissolves by owner death.	Owner is personally liable for ALL business debts.	The simplest type of business to form and no separate business tax return to file.	Taxed as ordinary income to the owner and the tax rate corresponds to the owner's tax bracket. Schedule C is filed with the owner's personal return and a separate business return is not filed.
General Partnership	A business operated by two or more general partners. Partners can be either individuals or business entities. Partnership will dissolve by death or withdrawal of a general partner.	General Partners are often jointly and severally liable for the partnership debts and personal assets are vulnerable for repayment of debts.	General Partnerships are very easy to form and do not require completing business tax returns.	Profits are not directly taxed, but are passed through to the partners' personal tax returns as specified in the Partnership Agreement.
Limited Partnership	Similar to a General Partnership except that in addition to being made up of a least one general partner, there are also one or more limited partners.	General Partners control the activities of the business and have full liability but limited partners usually do not manage the business activities and are not liable for business debts.	Limited Partners are merely investors, who provide capital without assuming liability.	Generally, profits are taxed to the partners based on the Partnership Agreement. The partnership files separate tax returns using Form 1065.
Joint Venture	An entity formed between two or more parties to undertake economic activity together. Joint ventures can be formed by most persons (e.g., individuals, corporations) and can be organized in a variety of ways.	Depending upon the structure of the organization of the joint venture, owner liability varies.	Joint Venture typically ends upon completion of business project. All parties generally share in equity, revenue, expenses and control of the venture.	Depending upon the joint venture's business organization, the tax structure will vary.
C-Corporation	A legal entity owned by shareholders and generally has officers, directors and employees.	The Corporation is responsible for its own debts. Shareholders are liable only for the investment in the Corporation.	C-Corporations have unlimited shareholders, and the corporation can continue on despite the death of shareholders, officers or directors.	Profits are taxed to the corporation at a corporate income tax rate. File form is 1120.
S-Corporation	A legal entity owned by shareholders, and generally has officers, directors and employees. Limited to 100 shareholders.	The Corporation is  typically responsible for its own debts. Shareholders are liable only for the investment in the Corporation.	S-Corporations are limited to 100 shareholders, and the corporation can continue on despite the death of shareholders, officers or directors.	Profits pass through to the shareholders and at the shareholders personal income tax rate. File form is 1120S for the company and K-1 for each shareholder.
Limited Liability Company (LLC)	A legal entity separate which will generally have members and managers and may have officers and directors.	Similar to Corporations, LLC's generally protect owners from personal liability for business debts. Owner liability is generally limited to the individual's investment in the company.	LLC's can have unlimited owners, generally, owners can actively participate in management without losing limited liability.	Often times, LLC's are taxed like a partnership and will file form 1065.
Professional Corporation	A type of business generally reserved for professional services that require a license to practice.	Individuals cannot avoid liability for his/her malpractice or for those whom he/she supervises and controls, but can limit exposure from malpractice of their associates.	Owners (partners) can limit their liability of the action of other professionals in the organization.	Generally, can be organized and taxed as  a corporation or LLC.

All accounts are subject to approval. The above material is for informational purposes only and shall not be construed as legal or tax advice. Please consult with a legal or tax professional for specific requirements and implications regarding the formation and taxation of business organizations.