LLC and S-corp: Definitions What is an LLC? LLC stands forLimited Liability Corporation; it may also be known as a sole proprietorship. Forming an LLC can provide legal protections for the owner from; lawsuits, and liability protection, and makes the business a legal entity. ...
However, there can be drawbacks of an S Corp that may deter a small business from taking this advantage. Always consult a professional before deciding on whether to be taxed as an LLC or S Corporation. You can learn more about the differences between corporation and LLC taxes here in our ...
LLC cons: Pay self-employment taxes (15.3%) File additional tax forms More difficult to raise money Cannot issue stock Limited life (dissolve or reform your LLC if an owner joins or leaves) S Corp pros: Limited liability for shareholders and management Pass-through taxation Don’t have to wo...
One easy, efficient, and fast way to start a company is toset up a Limited Liability Company(LLC). Let’s explore what exactly an LLC is, its suitability, advantages, and disadvantages, along with other fundamental factors that can help you decide if an LLC is right for you and your bu...
An LLC (limited liability corporation) is a popular type of business structure, especially for small businesses—but just because they’re common doesn’t necessarily mean they’re right for you. Learn the pros and cons of starting an LLC....
Pros and Cons of LLC Versus Sole Proprietorship Okay, so we've covered a lot of information in this post — but, when it comes down to it, which option is best for you? Let's quickly cover the pros and cons of each so you can make the best decision for your needs. ...
Cons of a C corp Expensive to form compared with other structures, like LLCs or sole proprietorships, due to the level of legal complexity, which will likely involve hiring a tax professional and one (or more) lawyers. Complicated operation. Double taxation. S corp vs. C corp S CorpC C...
The cons of an Illinois LLC Like any business structure, setting up your business as an Illinois LLC, or limited liability company, can have both advantages and disadvantages. Whether a particular feature is an advantage or a disadvantage may depend upon the type of business structures you're ...
(LLCs), which also separate a company's assets from its owners, but with different legal structures and tax treatment. A newer type of organization is the B corporation (benefit corporation), which is a for-profit firm but different from C corps in purpose, accountability, and transparency,...
Eight U.S. states permit the creation of series LLCs, which include a master LLC along at least one series of assets, members, interests, or managers. A series LLC can be used to protect assets and liabilities within a master LLC. However, the capacity of a series LLC to restrict ...