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Everything about forming a business at your fingertips.

Find out more about the filing requirements, taxes, and fees you may be responsible for when forming a business.

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What’s the Difference Between

an LLC and a Corporation?

Not sure if a corporation or an LLC is right for you? Read the comparison below to review the fundamental differences.

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If you are taxed as a standard LLC (not taxed as an S Corp), you have to pay employment tax on your entire salary.

Informal and Easy to Maintain

LLCs are not required to hold meetings annually or maintain bylaws. Furthermore, ownership is expressed by the percentage each member owns, while corporation ownership is represented by shares of stock.

Most Versatile

The LLC is the most versatile of all entity types as members can elect to receive the same tax treatment as an S or C Corporation. The ease of management, limited liability, and ability to designate corporate tax treatment make the LLC our most favored entity type.

Pass-Through Tax Entity

Any profits or losses on the business will pass through directly to the member's personal tax return and are treated as personal income and taxed on an individual level.

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Plan to Raise Money From Investors

The stricter formalities give investors the knowledge they desire about how your company is run.

Plan to Go Public in the Future

If you are planning to raise capital or to take the company public in the future the corporation is structured for that purpose.

Subject to Double Taxation

The corporation itself pays taxes, and any dividends paid to the shareholders are treated as personal income and are subject to additional taxation at the individual level.




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