DO YOU WANT TO PROTECT YOUR COMPANY AND PERSONAL ASSETS? WE CAN ASSIST FOR ONLY $427!
DO YOU WANT TO PROTECT YOUR COMPANY AND PERSONAL ASSETS? WE CAN ASSIST FOR ONLY $427!
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Both entities protect business owners, so they're not personally responsible for business liabilities or debts. The key differences include how they're owned (LLCs have one or more individual owners, and corporations have shareholders) and maintained (corporations generally have more formal record-keeping and reporting requirements).
The way you're taxed.
C corporation income is taxed twice—the business pays taxes on its net income, and the shareholders also pay taxes on profits they receive. With S corporation income, only the shareholders pay taxes on profits received.
An LLC protects owners from being at risk for business liabilities or debts. A sole proprietorship does not provide the same security.
LLCs, S corporations, and sole proprietorships are taxed once profits are received. C corporations are taxed twice; the business pays taxes at the corporate level, and shareholders pay taxes on income. Nonprofits with 501(c)(3) status are exempt from federal income taxes.
LLCs, corporations, and nonprofits. You don't get personal liability protection with sole proprietorships or DBAs.