C
corporation
|
S
corporation
|
LLC
|
|
Who owns
the business?
|
|
Shareholders
|
Shareholders
|
Members
|
|
Personal
liability
|
|
No personal
liability
|
No personal
liability
|
No personal
liability
|
|
Business
restrictions
|
|
Cannot be
formed for banking or trust or special
businesses
|
Some professionals
restricted
|
Some
professionals restricted
|
|
Number
of owners
|
|
One owner
corporation allowed
|
No more than
75 shareholders and they must be US citizens or
residents
|
District of
Columbia and Massachusetts require two members,
all other states allow one member
LLC
|
|
Management decisions
|
|
Board of
Directors
|
Board of
Directors
|
Ordinary
members or managers
|
|
Who may
legally obligate business
|
|
Directors and
officers
|
Directors and
officers
|
Any member or
manager
|
|
Effect
on business if an owner dies or leaves the
business
|
|
No
effect
|
No
effect
|
Most LLC
agreements say that LLC dissolves unless
remaining members vote to continue
business
|
|
Limits
on transfer of ownership
interest
|
|
Transfer of
stock may be limited under securities
law
|
Transfer of stock may
be limited under securities law and
transfer of nonqualified shareholders
terminates S tax status
|
Most LLC
agreements require membership consent to admit
new members
|
Information on Business and how to
incorporate information website is for information only.
You are advised to consult a tax expert for your
particular situation.
