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LLC vs. Corporation

When it comes to the decision of whether to organize your business as an LLC or an Corporation, it is important to evaluate your business needs, structure, and situation. Companies Incorporated (or any other incorporation service provider) cannot offer advice. If you have questions or concerns, you should contact an attorney or other financial professional. What we can do is provide you with thorough, accurate information about the differences in these two formal business structures that will help you make the best choice for you and your business.

Highlights of LLCs

  • Better for smaller businesses
  • More flexible than Corporations
  • May be owned by non-US citizens
  • May also be owned by a Corporation or another LLC
  • Unlimited shareholders
  • Different levels/classes of ownership
  • Less taxation (individual assessment only)

Highlights of Corporations

  • Better for larger businesses
  • More regulations than LLCs
  • May be owned by US citizens or US resident aliens only (no non-US citizens)
  • Cannot be owned by a Partnership, a Corporation, or another LLC
  • Limited to 75-100 shareholders
  • Limited to one class of stock
  • More taxation (Corporate and individual assessment)

If you have additional questions about the features of LLS or Corporations, please contact an associate at 1800Company.com for assistance.