LLC vs S Corp – 3 Main Differences
By Ewen Finser
Do you wish to take your sole proprietorship to the next level? Are you worried about your personal assets being tied to your business and wish to get protection from its liabilities? Or do you want to open up a new business and cannot settle on a suitable legal structure? The law outlines a couple of business structures that anyone can explore, but their differences and similarities can overlap and make it hard for you to pick a suitable one. In this, we will breakdown two common ones – LLC and S Corp and explain what they are to help you choose the best one for your business. Read on;
Main Differences Between LLC and S Corp
The Main Differences Between an LLC and S Corp are:- An LLC is a business legal structure, whereas an S Corp is a tax election status allowed on LLCs and Corporations to specify how they will want the entity taxed.
- An LLC has unlimited shareholders, whereas an S Corp limits the number to 100 shareholders
- An LL