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Credit: ACorporation4Less.com
Below is a table listing the specific characteristics of certain business entities. If you would like further explanation of particular terms, please click here to visit our Glossary of Terms.
| C-Corporation | S-Corporation | LLC | |
| Formation | State filing required | State filing required | State filing required |
| Duration of Existence | Perpetual | Perpetual | Dependent on the requirements imposed by the state of formation |
| Liability | Shareholders are typically not personably liable for the debts of the corporation | Shareholders are typically not personally liable for the debts of the corporation | Members are not typically liable for the debts of the LLC |
| Operational Requirements | Relatively few legal requirements | Board of directors, officers, annual meetings, and annual reporting required | Some formal requirements but less formal than corporations |
| Management | Managed by the directors, who are elected by the shareholders | Managed by the directors, who are elected by the shareholders | Members have an operating agreement that outlines management |
| Taxation | Taxed at the entity level. If dividends are distributed to shareholders, dividends are also taxed at the individual level | No tax at the entity level. Income/loss is passed through to the shareholders | If properly structured there is no tax at the entity level. Income/loss is passed through to members |
| Pass Through Income/Loss | No | Yes | Yes |
| Double Taxation | Yes, if income is distributed to shareholders in the form of dividends | No | No |
| Cost of Creation | State filing fee required | State filing fee required | State filing fee required |
| Raising Capital | Shares of stock are sold to raise capital | Shares of stock are sold to raise capital | Possible to sell interests, though subject to operating agreement restrictions |
| Transferability of Interest | Shares of stock are easily transferred | Yes, but must observe IRS regulations on who can own stock | Possibly, depending on restrictions outlined in the operating agreement |
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