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LLC vs. corporation:
What's the difference?
Minimal record-keeping
An LLC does not need to record minutes or hold an annual shareholder meeting.
Owned by shareholders
Corporations have shareholders instead of members, and they issue stock.
Look more official
Corporations are often seen as more credible, which can make it easier to do business with other companies.
More appealing to investors
A C corp, but not an S corp, can go public and issue stock to new investors, which makes it easier to raise revenue.
More taxation options
An LLC has flexibility in how it is taxed to help maximize savings.
To form an LLC, you'll need to file articles of organization with the state. Each state has its own rules, but our experience across all states helps us keep things moving when we file on your behalf.
Here are a few things you'll need to keep in mind to get your LLC up and running.
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LLC stands for "limited liability company." It refers to the ways in which you can use an LLC to protect your personal assets.
It’s not necessary to form an LLC in order to start a business. Also, an LLC is only one of several ways to structure a business. Other possibilities include: C corporation, S corporation, nonprofit, sole proprietorship, general partnership, limited partnership, and limited liability partnership.
Both LLCs and corporations protect owners’ personal assets from business liabilities or debts. But they have some key differences, including:
An LLC is a type of business entity while an S corporation is a corporation with a special federal tax election. Either an LLC or a C corporation that meets certain requirements can apply to be treated as an S corporation for tax purposes. An S corp is similar to an LLC in that it can help its owners avoid double taxation.
Yes, but it’s not all that common. Certain requirements must be met, and it can be a little confusing to understand all of the legalities. It’s always wise to seek advice from a legal professional and/or tax advisor to determine whether to take your business in this direction.
Yes. Generally speaking, an S corp can be a member of an LLC.
It depends. Our LLC plans start at $0 plus filing fees, and you can add more services as your business needs them. LLC filing fees also vary by state. However, all of these costs are often tax-deductible.
Our do-it-yourself packages (Basic, Pro) don’t include access to an attorney—but our attorney-assisted package (Premium) includes unlimited 30-minute consultations with independent attorneys from our network, with each consultation focused on a new legal topic or issue related to the formation and launch of your LLC.
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Find the right state to form an LLC
Every state has different rules, costs, and considerations for LLC formation.
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