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Compare Business Entities: LLC vs Corporation

DELAWARE LLC VS. CORP Types Of Entities Formed In Delaware 1998 2006 2014 87,729 145,630 168,966 71.96% LLCS 35.10% LLCS 55.72% Corporations 7.23% Partnerships 1.95% Statutory 66.61% LLCS 23.89% Corporations 21.57% Corporations 6.84% Partnerships 2.65% Statutory 5.75% Partnerships 0.71% Statutory Trusts Trusts Trusts The Differences Between LLCS And Corporations: CORPORATION LLC State filing required FORMATION State filing required Typically, Typically, members are liable only to the shareholders not liable for LIABILITY debts of the corporation extent of their investment There is no stock in an LLC. Ownership is shown through percentages and capital is raised by the amount of money invested by investors Shares of stock sold to raise capital; Directors set the price RAISING CAPITAL Shareholders and Board Meeting and minutes not required; Delaware does not require annual reporting of members of Directors must hold meetings in which official minutes must FORMALITIES be recorded; annual state reports required Company can elect Subchapter S status; otherwise, C-Corp status is the default Company may elect to be taxed as a partnership, S-Corp or C-Corp; IRS considers a single-member LLC a "disregarded entity that is not taxed at entity TAXATION level Shareholders elect Board of Directors; Board appoints officers to run the company on a daily basis Operating Agreement, created by members, describes management responsibilities MANAGEMENT DelawareInc.com 800-345-CORP info@delawareinc.com ***** HBS DELAWARE 19 @delawareinc /Delawareinc Delawareinc € 2016 Harvard Business Services, Ic. INC ARVARD 00000

Compare Business Entities: LLC vs Corporation

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Which business entity is better for raising capital, paying taxes, limiting liability and easy management. Find out in our simple, descriptive infographic. For more information, read our Corporation v...

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