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LLC, C-Corporation, or S-Corporation?

Compare and choose the right entity for your new business.

	LLC	C-Corporation	S-Corporation	Partnership
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.