Limited Liability Companies (LLC)
A Limited Liability Company (LLC) is a flexible U.S. business structure offering personal liability protection. It can have one or more owners (members) and is favored by small business owners and entrepreneurs for its simplicity and tax flexibility.
Limited liability protection owners, shielding personal assets from business debts and liabilities - Simple management structure and easy to operate, making it ideal for entrepreneurs and small businesses.
- Unlimited owners (both U.S. and international), offering flexibility for business expansion and diverse ownership. LLCs cannot issue stock
- Ownership represented by members, with each member holding a stake in the business's operations and profits.
C-Corporation (C-Corp)
A C-Corporation (C-Corp) is a business structure that exists independently of its shareholders, offering robust liability protection. It is the standard corporate structure in the U.S. and is commonly preferred by companies aiming for expansion and seeking to attract investors.
- Protection from personal liability for owners.
- The ability to raise funds by issuing shares.
- Ownership is held by shareholders.
A management structure with additional operational requirements.
S-Corporation (S-Corp)
An S-Corporation (S-Corp) is a business structure that combines the benefits of limited liability with tax advantages. Similar to a corporation, it provides protection for its owners' personal assets. However, unlike traditional corporations, an S-Corp allows profits and losses to pass through directly to the owners’ personal income. This pass-through taxation prevents the issue of double taxation, which is typically seen in standard corporations. As a result, owners are taxed only at the individual level, making the S-Corp a more tax-efficient choice for many small business owners.
- Protection from personal liability for owners.
- Direct tax flow
- The ability to raise funds by issuing shares.
- Shareholders must be U.S. citizens or residents.
- Capped at 100 shareholders or less.
