What are the Differences – LLC vs Corp?
The biggest difference between a LLC and a corporation is the way that the LLC is taxed compared to the corporation. The LLC can choose various methods of taxation, they can choose to be taxed as a partnership, or they can opt to be taxed as a corporation. Most LLC’s opt for the partnership taxation because it allows them to take advantage of pass through taxation. Corporations on the other hand are not eligible for pass through taxation, they often face double taxation because the profits are taxed at the corporation’s level and then the dividends are taxed at the individual level. The only way to get around this difference is to elect to form an S Corporation, which there are several s corporation advantages that make choosing an s corporation the right choice.