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In the United States, an S corporation is limited to 100 shareholders, and all of them must be U.S. tax residents. An LLC may have an unlimited number of members, and there is no citizenship restriction. Much less administrative paperwork and record-keeping than a corporation.
Limited Personal Liability. Less Paperwork. Tax Advantages of an LLC. Ownership Flexibility. Management Flexibility. Flexible Profit Distributions.
Disadvantages of creating an LLC Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.
In the United States, an S corporation is limited to 100 shareholders, and all of them must be U.S. tax residents. An LLC may have an unlimited number of members, and there is no citizenship restriction. Much less administrative paperwork and record-keeping than a corporation.
Disadvantages of creating an LLC Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

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Disadvantages of creating an LLC Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.
Characteristics of limited liability company include separate legal existence, limited liability, flexibility in taxation, and simplicity in operation.
Tax Disadvantages of the LLC LLC members must pay taxes on their distributive share of the profit of the company, even if they have not received a distribution of those profits. Owners of a corporation do not pay taxes on profits unless they are distributed, usually in the form of dividends.
The pros and cons of a single member LLC ProsConsFlexible federal income tax filing (choose to file as a sole prop or corporation)Must maintain corporate veilpiercing it puts your assets at riskCan pass on ownership to others, eg. family members2 more rows Aug 23, 2022
Limited liability is a form of legal protection for shareholders and owners that prevents individuals from being held personally responsible for their companys debts or financial losses.

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