Online Forms

Using our online Forms you can select to setup an LLC or C-Corp Company using the links below.

LLC vs Corporation

The below summaries the main differences between each type of company type. If you are unsure about which to choose, contact us and we can advise accordingly.

Corporation LLC
Snapshot
A business entity, separate from its owners.

Can raise capital by issuing stock. Preferred by investors.
Hybrid form of business providing company and partnership privileges. Less paperwork and no meeting requirements.

Suitable for small-scale and early-stage startups.
Ownership
Owners are called shareholders. Suitable if plan to involve outside investors or have ambitions to list on an exchange. Owners are called members. Members hold a percentage of the entity called a “membership interest”.
Governance
Formal Management Structure, with Shareholders, Directors and Officers.

Shareholders elect Board of Directors with structure and duties prescribed by Delaware Corporation Law.
Simple Management Structure, with no Board of Directors.

Governed by a an Operating Agreement which is a contract between the Members.
Raising Capital
Sells stock sold to raise capital. There is no stock. Capital raised by amount of money raised by members.
Minimum
One or more shareholders.
One or more members.
Management
Shareholders elect a Board of Directors, responsible for management of the Corp.
LLC is run by the member(s) or a Manager, appointed by the Member under the Operating Agreement.
Compliance
Requires record keeping and compliance.
Less compliance requirements.
AGM & Report
Must have AGM and file annual report.
No AGM or annual report required.
Privacy
The annual report states the name and address of the Directors, one officer; and the address of the principal place of business.
Delaware requires little information to form an LLC; it does not require the names and addresses of the members. Only requires name and address of Registered Agent which can be a third-party provider.
Taxation
Treated as a separate legal person. The entity is taxed on its income and any shareholder distributions/dividends are taxable separately.

Employees income will also be subject to income tax.
Typically, IRS considers a single-member LLC a disregarded entity and a multi-member LLC a partnership.


Provides for pass-through taxation – where members are taxed on income. Can elect to be treated as a Corp for tax purposes.
Liability
Limited to shares. Limited to investment made.

Summary:

Both entity structures offer benefits along with certain similarities. Choosing one form over the other depends upon the business expansion plans. Cost-benefit must be done before selecting to ensure business goals are achieved.