LLC, C-Corporation, or S-Corporation?

Compare and choose the right entity for your new business.

 

LLCC-CorporationS-CorporationPartnership
DefinitionCombines elements of a corporation and a partnership.Separate legal entity with legal rights and liabilities that are different from shareholders (owners).Separate legal entity with legal rights and liabilities that are different from shareholders but that offers tax advantages by the IRS.Two or more people owning and operation the business preferably with a partnership agreement.
Number of OwnersNo limitNo limit on shareholder100No limit
How to StartState regulated and Articles of Organization and required tax numbers.State regulated. Need Articles of Incorporations, bylaws and tax numbers.State regulated. Need Articles of incorporations, bylaws and tax numbers.Should have an agreement and required tax numbers.
Management ControlRests with management committee (owners or those shareholders).Rest with the board of directors appointed by the shareholders.Shared by owners shareholders.Shared by general partners according to partnership agreement.
TaxationTaxes can be assessed several ways based on the structure of the company but is taxed once.Profit is taxed to the corporation and then dividends to owners are taxed again.Profits from the company are taxed once. Profits are split among owners.Profits from the company are taxed once. Profits are split among partners based on partnership agreement.
Personal LiabilityLiability limited to corporation assets unless a personal guarantee is signed.Liability limited to corporation assets unless a personal guarantee is signed.Liability limited to corporation assets unless a personal guarantee is signed.General partnership personal assets are at risk, limited partnership.
Transfer of OwnershipYesYesYesBased in partnership.

Frequently Asked Questions

Our experts answer all important questions.

What is a C corporation?

C corporations get their name from the section of IRS code, subchapter C, that regulates them. The traditional or “C” corporation remains one of the United States most popular business structures. It offers unlimited growth potential through the sale of stock, and there is no limit on how many shareholders a C corporation can have. For a company looking to expand and eventually attract global partners and investors, it is hard to beat the C corporation.

How is a C corp structured?

Regardless of whether a C corporation is small or large, it will have the same top-down structure, though in small-companies, one person may need to play several of these roles at once:

  • Board of Directors
  • Officers
  • Shareholders
  • Employees

What are the advantages of becoming a C corp?

  • Owners have limited liability
  • The C corporation has “perpetual existence”, independent of its owners.
  • Corporate Ownership is fluid
  • It is easy to attract investors
  • Incorporated businesses garner more respect
  • There are tax-deductible business expenses

What are the disadvantages of becoming a C corp?

  • Shareholders experience double-taxation on stock dividends.
  • There are a lot of rules and formalities
  • There is no deduction for corporate losses

How do I get started?

Quickly complete our convenient online order form, which collects all of the necessary information, and only takes a few minutes. Please contact us by email or phone, if you have any questions or would like help getting your order processed.

What happens if the company name I want is not available?

We request that you provide up to three name choices when you order. The name is selected based on your priority and availability. If all three names are not available, we will contact you for additional name choices.

What happens if I change any of my information after my order is complete?

Depending on the type of information that is changing. Some information, for example, company’s name, business purpose, number of shares and/or par value (for corporations), must be changed with the state by filing an amendment. The state filing officially updates the information the state has for your registered company.If you have any questions on whether specific information in your state-filed documents would need to be updated by means of an amendment filing, contact our office.

What if there is an error on my state-filed documents?

We are confident in our ability to provide accurate filings. We review each order we receive to identify potential errors. In the unlikely event that an error is made, We’ll respond promptly to remedy any error.We warranty our filing services against defects caused by us for the life of your company. We will absorb any fees/costs necessary to correct the error and will correct the mistake as quickly as possible. If, on rare occasions, the state makes a mistake in entering your information. If you notice an error, contact us immediately and we will work directly with the state to correct it.

Testimonials

See what our clients have to say about Filenow service.

 
4.8

Overall Rating


Based on 32 reviews.
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out of 5.0

This has been the easiest small business set up ever. I should have done this with every startup.


Michael G
August 23, 2019

Very quick and dependable. So far, the service has been super easy and helpful.


Elroy D
September 23, 2019

Filenow  is trusted by thousands of business owners worldwide.