What Are the Differences Between an C Corp, S Corp and LLC?

One of the main differences between C Corps and S Corps / LLCs are how income from the different types of businesses are taxed.

• For LLCs and S Corps, any income earned by the business “flows through” to the business owners’ / shareholders’ / members’ tax returns, where it is taxed as part of one their overall income. The company does not have to file a separate tax return.
• S Corps and C Corps can pass on some of their profits to shareholders as dividends.
• S Corps are limited to having a maximum of 100 shareholders.
• A C Corp is taxed at the corporate level — That means it has to file a separate tax return as a business entity and will need to pay corporation tax on any profits earned.

If you have any questions give us a call today at 818-568-0644 and get free consultation, and it includes a through discussion of your options.