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LLC, C-Corporation, or S-Corporation?
|Definition||Combines 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 Owners||No limit||No limit on shareholder||100||No limit|
|How to Start||State 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 Control||Rests 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.|
|Taxation||Taxes 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 Liability||Liability 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 Ownership||Yes||Yes||Yes||Based in partnership.|
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