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LLC or Inc?
While it's true that most owners of small to medium-sized businesses form Limited Liability Companies (LLCs), you might want to compare the different business structures available to you in our Business Comparison Chart below:
Comparison of Different Business Structures
| C Corporation |
Subchapter S Corporation |
Limited Liability Company | Limited Partnership | Sole Proprietorship | |
|---|---|---|---|---|---|
| Limits owner liability for business debts & obligations | |||||
| Company name protected by registration process | |||||
| Company can have an unlimited term of existence | |||||
| No limit to number of owners | |||||
| No citizenship requirements for owners | |||||
| May be owned by another business, rather than individuals | |||||
| May issue shares of stock to attract investor | |||||
| Owners can report business profit and loss on their personal tax returns | |||||
| Owners can split profit and loss with the business for a lower overall tax rate | |||||
| Not required to hold annual meetings or record meeting minutes |
Tips & Tools for Start-ups
Learn about LLCs by state:
