Limited Liability Company (LLC)
The LLC is the most popular business choice because of its flexibility, protection and tax advantages. There are no meeting requirements and few corporate formalities. All LLCs require an Operating Agreement.
Corporation
A corporation is owned by its shareholders and managed by its directors and officers. This is not recommended for most small businesses because of its complexity and many requirements, including bylaws, annual meetings and annual reports.
LLC
Corporation
Ownership
Members own "Interests"
Shareholders own Stock
Who Manages the Business?
Members and/or Manager
Shareholders elect board of directors,who appoint officers
Annual Filing to the State
No Annual Report RequiredFlat fee of $300 paid to the state
Annual Reports Listing DirectorsMinimum fee of $225* paid to the state
Tax Options
3 Tax Election Choices(Partnership/Sole Proprietorship, S or C Corporation)
S or C Corporation
Owner Liability
Liability limited to assets of LLC
Liability limited to assets of corporation
Filing Fee
$90
$89
* Fee estimate is for a minimum stock corporation and could be higher.
LLC
-
Ownership
Members own "Interests"
-
Who Manages the Business?
Members and/or Manager
-
Annual Filing to the State
No Annual Report RequiredFlat fee of $300 paid to the state
-
Tax Options
3 Tax Election Choices(Partnership/Sole Proprietorship, S or C Corporation)
-
Owner Liability
Liability limited to assets of LLC
-
Filing Fee
$90
Corporation
-
Ownership
Shareholders own Stock
-
Who Manages the Business?
Shareholders elect board of directors,who appoint officers
-
Annual Filing to the State
Annual Reports Listing DirectorsMinimum fee of $225* paid to the state
-
Tax Options
S or C Corporation
-
Owner Liability
Liability limited to assets of corporation
-
Filing Fee
$99
* Fee estimate is for a minimum stock corporation and could be higher.
