LLCs v. S-Corporations v. C-Corporations
Which Entity is Right For You?
The chart below shows some of the similarities and differences between s corporations, llcs and c corporations.
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C Corporation
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S Corporation
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LLC
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| Limited Liability for Owners |
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| Can be owned by non-U.S. citizens or non-resident aliens | |
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| Must be owned by U.S. citizens or resident aliens | |
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| Can own or be owned by other business entities |
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| Can have unlimited number of shareholders/members |
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No more than 100 |
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| Can have more than one class of stock or ownership interest |
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| Income of entity is taxed separately from income of owners |
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| Tax on entity's income is paid by owners individually, not the entity | |
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| Owners can deduct 100% of their health insurance premiums |
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| Owners can deduct business losses on individual tax returns | |
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Click here to read more details about the differences between s corporations and llcs
If you need more specific advice about which entity is right for you, you should speak to a lawyer or accountant.
