What is the difference between an LLC, a corporation, and a Subchapter S corporation?
The main similarities between an LLC and a corporation are: both are legal entities created by a state filing, both help protect your personal assets from your business liabilities, and both have few ownership restrictions. A Partnership is a legal relationship between two or more persons who carry on business together in order to make a profit. A Corporation exists as its’ own legal being. The owners of a corporation are its’ shareholders. The main differences between LLCs and corporations are: corporations issue stock and are owned via stock, while LLCs do not issue stock. Like partnerships, LLCs are simply owned by the members and/or the managers of the company. Corporations are required to hold annual meetings and to keep written minutes. LLCs do not have this requirement, resulting in less official paperwork. Corporations are taxable entities, and (except for Subchapter S Corporations) they must pay taxes on their profits at the corporate tax rate. LLCs, like sole proprietors, par
