CORPORATION v. LLC – Comparison Chart
| Corporation v. LLC | C Corporation | S Corporation | LLC |
|---|---|---|---|
| Limits personal liability for business debts (no personal liability in most cases) | YES | YES | YES |
| Separation between personal and business finances (including tax returns) | YES | YES | YES |
| Annual business taxes due to State | YES | YES | YES |
| Additional annual business taxes may be due to State based on gross receipts of business | NO | NO | YES |
| Single taxation (all business profits/losses “pass-through” to owners) | NO | YES | YES |
| Double taxation possible (both business and owners taxed) | YES | NO | NO |
| Most flexible management structure | NO | NO | YES |
| Annual reporting to State | YES | YES | NO |
| Biennial reporting to State | NO | NO | YES |
| Certain restrictions apply on eligibility | NO | YES | NO |
What entity type is right for your business?
If you are in business already or are looking to start a new business, both corporations and LLCs are great to ensure that your business assets and liabilities stay separate from your personal assets and liabilities. If your business does not plan to own or manage property, a corporation is a great choice. The S corporation, commonly know as the small business corporation, is especially favorable for small businesses that will have a limited number of individual owners.
The LLC structure is a great choice as well, especially for those owners looking to manage or own real estate; and the LLC is especially desirable if your business will be owned by one or more other entities, such as another corporation or LLC. The LLC is also a good choice if your business will be managed by only some of its owners or a separate manager.
Interested in a different entity type? Contact Us, we’d be happy to assist you!