Similarities:

  1. They are legal entities created by a state filing (they can sue and be sued, and establish corporate credit.
  2. They have very few ownership restrictions and may be owned by non-US residents, business entities or individuals (Unless it is an S Corporation).
  3. They help protect your personal assets from your business liabilities.
  4. Both can be amended to fit your company as your company’s needs change.
  5. Both require on-going reporting to State and Federal entities.


 Differences:

 

  1. Corporations issue stock, LLCs do not.
  2. Corporations are owned by stock holders, LLCs are owned by member interests.
  3. Corporations are required to hold annual meetings for both directors and shareholders, LLC are not required to.
  4. Corporations are a separate taxable entity; LLCs are not, by default  they are treated as a pass-through tax entity, thus not having double taxation issues that C corps have.

 

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The above information is compiled for your convenience from our research of other publications including State and Federal agencies.  Vision Interface can not give legal advice, nor do we claim to be CPA’s or attorneys.

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