A common example of an LLC are small real estate companies. Many people have begun investing in real estate as a method of earning passive income. However, it is risky to operate as a sole proprietor in case of a liability situation. This way, the LLC will absorb any wrongdoing or liabilities rather than the individual owner.
Additionally, LLC’s allow there to be multiple partners, allowing these individuals to pool capital together to try and grow the LLC.
Meanwhile, a famous example of an S Corporation is Scrub Daddy Inc. Scrub Daddy became a globally recognized brand due to its success on shark tank. Scrub Daddy started off as a small single sponge company that now offers a wide range of products. Shark Tank Host and QVC legend Laurie Grenier invested in the brand, and the business today is valued at over $209 million. While S Corps can be small in terms of number of owners, they can still become highly profitable companies.