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.