An LLC can also choose taxation as a corporation, and owners can save money by electing S corp. An LLC is more flexible than a corporation in organization and profit distribution. LLCs offer a formal business structure, while they can also be taxed similarly to sole proprietorships or partnerships. Owner-employees of LLCs are self-employed. LLCs can have one owner (single member LLC) or more than one owner (multi-member LLC). You can use this guide to sort out the differences between LLCs and S corporations to make the best decision for your business.Ī limited liability company is a legal designation that can protect small-business owners from personal liability in business obligations. Whether you're curious about establishing an LLC or about launching an S corporation, starting a business is an exciting undertaking full of learning experiences. is that an LLC is a business entity while an S corp.
Limited liability companies (LLCs) and S (Subchapter) corporations are often discussed together, but this is misleading.
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