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What are the differences between Corporations and LLCs (Limited Liability Companies)?

April 26, 2017corporations differences limited liability companies LLCs

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What are the differences between Corporations and LLCs (Limited Liability Companies)?

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Like Corporations, LLCs offers limited liability to their owners; however, unlike Corporations, LLCs are taxed as Partnerships or Sole Proprietorships (unless they elect to be taxed as Corporations). This allows LLCs to pass all of their income and losses through to the owners. LLCs also have an advantage over S-Corporations because S-Corporations can only have 100 stockholders. Plus, those stockholders must be U.S. citizens and must not be Corporations.