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
LLC
- 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
Requirements:
- 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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