LLC vs C-Corp | BusinessFormations.com

LLC vs C-Corp: Which Structure is Right for Your Business?

Choosing between an LLC and a C-Corporation depends on your goals, tax strategy, and growth plans. Here’s how they compare.

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Key Differences: LLC vs C-Corp

1. Taxation

LLC: Pass-through taxation (profits taxed once at the member level).

C-Corp: Double taxation (corporate and shareholder levels).

2. Ownership

LLC: Owned by members, flexible structure.

C-Corp: Owned by shareholders, ideal for raising capital.

3. Formalities

LLC: Fewer reporting requirements and formalities.

C-Corp: Requires bylaws, board meetings, and minutes.

4. Profit Distribution

LLC: Flexible profit-sharing among members.

C-Corp: Dividends based on share ownership.

5. Ideal For

LLC: Small businesses, solopreneurs, consultants.

C-Corp: Startups seeking outside investment or IPO.

Need Help Deciding?

Not sure whether an LLC or C-Corp is right for your goals? Let our expert partners help you choose and form your business quickly and affordably.

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