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LLC vs C Corp

LLC and C Corp both offer same liability protection. Key differences:

C Corp
  • Double taxation
  • Document intensive
  • Bylaws, Minutes, Stocks, Stock Ledger, Shareholder Agreement
  • Pass through taxation
  • No documents if single owner, Operating Agreement if 2 or more owners/members

S Corp (means Small Corporation)

  • Tax election
  • Can be an LLC / S Corp or a C Corp / S Corp
  • Domestic
  • Allowable shareholders
  • Individuals, certain trusts
  • May not be partnerships, corps, or non-resident aliens
  • Have no more than 100 shareholders
  • One class of stock
  • Must file within 2 months and 15 days from date of formation for election to take effect the first tax year

As always if you have questions about it as always, feel free to reach out to the Law Office of Jade Carpenter, and I would be happy to help! See you next time.

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The materials available at or within this article and video are for information purposes only and not for the purpose of providing legal advice. You should ask an attorney to obtain advice with respect to any particular issue of problem.