Forum Replies Created

  • Harmon Smith

    June 10, 2009 at 10:48 am in reply to: LLC, C-Corp, S-Corp?

    With the exception of the difference in tax treatment, a C corporation and S corporation have many of the same attributes.
    LLC’s require less formality and paperwork and are more flexible in how owners divide up profits. But, S corporations allow owners to save on employment taxes.
    One big difference between S corporations and LLCs is that owners of an LLC can distribute profits in the manner they see fit. For example, assume Adam and Bart own an LLC to which Adam contributed $80,000 in capital and Bart only contributed $20,000. If Bart performs 80% of work the owners could still decide to split the profits 50/50. If these same partners owned an S Corporation, Adam would be required to take 80% of the profit and Bart only 20%.
    Here is a comparison chart between C,S and LLC
    https://www.clickandinc.com/llc-s-corp-c-corp-chart.asp

We use anonymous cookies to give you the best experience we can.
Our Privacy policy | GDPR Policy