C-corporations: are taxed at corporate and individual levels. They offer personal liability protection, tax savings, and increased opportunities for raising capital. Corporations are also required to perform certain formalities such as holding annual meetings and keeping detailed corporate records (minutes).
S-corporation: An S-corporation is a regular corporation that has elected "S corporation" tax status. Forming an S corporation lets you have the limited liability of a corporate shareholder but pay income taxes as if you were a sole proprietor or a partner. The S corporation itself does not pay any income tax, although an S corporation with more than one owner must file an informational tax return like a partnership to report each shareholder's portion of the corporate income.
LLC Limited Liability Company: will let you form a legal entity that insulates you from liability for claims against your business and at the same time, it keeps you in your current tax bracket. If you’re a sole proprietor and you form a one-person LLC, you’ll continue to be taxed as a sole proprietor.
S-corporation: An S-corporation is a regular corporation that has elected "S corporation" tax status. Forming an S corporation lets you have the limited liability of a corporate shareholder but pay income taxes as if you were a sole proprietor or a partner. The S corporation itself does not pay any income tax, although an S corporation with more than one owner must file an informational tax return like a partnership to report each shareholder's portion of the corporate income.
LLC Limited Liability Company: will let you form a legal entity that insulates you from liability for claims against your business and at the same time, it keeps you in your current tax bracket. If you’re a sole proprietor and you form a one-person LLC, you’ll continue to be taxed as a sole proprietor.
