LLC vs C Corporation

LLC simply stands for Limited Liability Company. While a C corporation which stands as a legal independent person apart from the directors and the shareholders.

The first step in all businesses is choosing where to incorporate them. Incorporating a business will all depend on the area where the business is going to operate.

An LLC owner are not called shareholders or partners, they are typically called members. When you say LLC, it is more flexible than the corporations though it is less formal. But LLC and corporation offer the same protection as well as the advantages. Over the years LLC become more known to people because it can operate in a separate entity legally. The members are the ones who draw up an agreement to operate the business without the use of any guidelines which is conclusive on a corporation. In this way, flexibility is greater achieve without any formality needed. What is good about LLC even a single member can form a legitimate business with LLC.

Here are some of the advantages of LLC or Limited Liability Company:

  • You don't need to worry about meeting the formalities and requirements of any corporation just to maintain its status in the business industry.
  • There is a flexibility in responsibilities and management that is why every member can draw up any of their contract.
  • A personal liability protection is given to the members from Limited Liability Company.
  • Flexibility in the business can be achieved when allotting incomes to the members.

A C Corporation is usually owned by shareholders. These shareholders are required to elect a person that who will act as a board of directors. His role is to come up with a business decision and policies oversee. C Corporations are also entitled to give reports regarding their financial operations to the state general attorney.

What is good about the C Corporation is that the owners and the shareholders will have the benefit to a limited liability for the corporation’s obligations; they are also being protected from the creditors of the company even if they did not do their obligations.

Here are some of the other benefits of C Corporation:

  • A business that chose C Corporations are at low risk of being audited by their government.
  • The shareholders and owners also have a low liability when it comes to the debts of the business.
  • The benefit's cost can be deducted as an expense of the business.
  • The profit can also be split among the corporation and as well as for the owners. Which can result to savings of tax?
  • A C Corporation can also have as many stockholders as they want. This in the end will allow the corporation itself to sell its share to different investors.

Now that you have read everything about LLC and C Corporation, it is up to you to choose what is best for your business. You can ask the help of your family and friends who are familiar with the LLC and C Corporation.


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