Differences Between LLC, S-Corp, and C-Corp

If you’re thinking about registering your business, it’s crucial to understand the differences between an LLC (Limited Liability Company), an S-Corp (S Corporation), and a C-Corp (C Corporation). Each structure offers unique benefits depending on your business and tax goals.

LLC (Limited Liability Company)

📌 What is it?
An LLC is a flexible business structure that protects personal assets from business debts and lawsuits.

📌 Advantages:
✅ Personal liability protection.
✅ Fewer regulations and administrative requirements.
✅ Option to be taxed as a business or an individual.

📌 Disadvantages:
❌ Subject to self-employment taxes.
❌ Not ideal for attracting investors or large-scale expansion.

S-Corp (S Corporation)

📌 What is it?
An S-Corp allows business owners (shareholders) to pay taxes only on their personal income, avoiding double taxation.

📌 Advantages:
✅ Avoids double taxation.
✅ Allows owners to pay themselves a “reasonable salary” and take additional profits with fewer taxes.
✅ Great for small and medium-sized businesses.

📌 Disadvantages:
❌ Limits on the number of shareholders.
❌ Ownership restrictions (only U.S. citizens or residents can be shareholders).

C-Corp (C Corporation)

📌 What is it?
A C-Corp is a separate legal entity that pays corporate taxes. It is ideal for businesses looking to grow and attract investors.

📌 Advantages:
✅ No limit on the number of shareholders.
✅ Can issue stock and attract investors.
✅ Corporate tax benefits for large companies.

📌 Disadvantages:
❌ Double taxation (on corporate profits and personal income).
❌ More regulations and reporting requirements.

Which Structure Is Best for You?

📊 If you’re a small business owner, an LLC may be the best choice.
💼 If you want to optimize taxes, an S-Corp is a great option.
🏢 If you plan to expand and attract investors, a C-Corp is ideal.

📞 At Viera Services, we help you choose the best business structure for your needs. Contact us today!

📍 Gainesville: +1 470-846-6232 | (770) 287-7745
📍 Cornelia: +1 706-778-6478