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LLC vs. Corporation

Compare the key differences in tax, management, and equity to select the ideal vehicle for your business.

Limited Liability Company (LLC)

An LLC is a flexible, modern hybrid entity that combines the strong liability protection of a corporation with the operational ease and tax flow-through of a partnership.

LLC Advantages:
  • Pass-Through Taxation: Profits flow directly to your tax return, avoiding "double taxation."
  • Minimal Overhead: No mandatory annual board meetings, corporate resolutions, or complex corporate books.
  • Unmatched Flexibility: Easy to configure roles, shares, ownership ratios, and distributions.
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Corporation (C-Corp)

A Corporation is a formal, independent legal entity owned by shareholders. It is the mandatory standard for venture capitalists and companies wishing to issue public shares.

Corporation Advantages:
  • Fundraising Gold Standard: Venture capital funds and angel networks prefer investing in Delaware C-Corps.
  • Stock & Options: Seamlessly issue multiple classes of shares and establish stock option plans for workers.
  • Perpetual Existence: Distinct corporate identity remains completely independent of ownership changes.
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Entity Feature Breakdown

Criteria LLC Corporation (C-Corp)
Ownership Structure Members (Owners) Shareholders
Taxation Method Pass-Through (No corporate double tax) Double Tax (Corporate tax + Individual dividend tax)
Operational Overhead Extremely Low (Simple management) High (Bylaws, board meetings, minutes required)
Fundraising Suitability Moderate (Ideal for bootstrapping/partnerships) Excellent (VCs & Angel standard)
Liability Protection Yes (Strong veil) Yes (Strong veil)

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Whether you choose an LLC or Corporation, our automated setup will have you incorporated in record time.

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