Difference Between LLC S Corp and C Corp

Your business is unique. Multiple aspects of your business should be considered by an experienced attorney in determining what type of entity should frame your company. Typically, the two main dimensions are tax and liability.

In forming a new entity, it can save you hundreds or thousands of dollars immediately, and in the future, to be strategic and wise. To maximize your chances of success, it is essential to consider the differences between a limited liability company (LLC), an S corporation and a C corporation.

LLC, S-Corp Or C-Corp: Which One Is Right For You?

At the law firm of Janathan L. Allen, APC, we help our clients make informed decisions about entity formation that will support their business objectives. We believe it is wise to start a business with the end in mind — with an awareness of how their new entity should support what they want years in the future. Our attorneys can assist you in asking yourself, and answering, questions like:

  • What are the specific tax benefits of each type of entity?
  • What issues must I consider if my entity will do business overseas? What if it is based overseas?
  • What type of personal exposure (liability) will an LLC or corporation allow?
  • If I remain a sole proprietor, what’s the worst thing that could happen?
  • What might I gain from taking on the added responsibilities associated with incorporation?

Every business is different. Most businesses fail because of inadequate planning. Many successful young businesses are vulnerable to liability due to the protections (or lack thereof) in the entity they have selected, or due to a failure to protect the “corporate veil” they’ve established. Obtain proper advice before setting your business in motion.

Contact Janathan L. Allen, APC And Allen Barron | Get Your Questions Answered

Our lawyers are based in San Diego, California, but we serve clients located throughout the world. Contact us for a free consultation. We can explain the differences between LLCs, S-corps and C-corps.