whats the difference

bytenrambytenram Posts: 9subscriber
edited January 2008 in Business Planning


what are the major differences between LLCs and SCorps?

Comments

  • stonesledgestonesledge Posts: 8subscriber
    Hey there, I never heard back.. about RHV. If you want it, let me know. PM me when you can.As for the differnce here some info.
     
    Erin
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Erin,
     
    Good info and a nice chart. If I may add a couple of points.
     
    S corp ownership is pretty much restricted to US individual because shares cannot be owned by owned by C corps, other S corps, Most trusts, LLC`s or partnerships. Also, S corps may not have shareholders who are nonresident aliens.
     
    Distribution of results (profit/loss) in an S corp must be in the "ratio" of ownership. An LLC does not have this restriction.
     
    LLC`s fall under partnership tax law - which has it`s own set of unique "features".
     
    Since Corporation`s have been around far longer than LLC`s there exists a plethora of precedence in the law - whereas the LLC is fairly new.
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