Choose a company type
Comparing company types
| Main differences | LLC | C-Corp |
|---|---|---|
| sr only | LLCs can’t go public | Less management flexibility; must have a board of directors |
| sr only | Not recognized globally; you may be taxed as a corporation outside U.S. | More admin; strict rules about holding meetings and keeping records |
| Protections & Taxation | LLC | C-Corp |
|---|---|---|
| Protects personal assets | Yes | Yes |
| Offer pass-through taxation | Yes | No |
| sr-only | This avoids the double taxation that occurs in some other business structures | Double taxation — corporate and shareholder taxes. |
| Membership | LLC | C-Corp |
|---|---|---|
| sr-only | Single member or multiple members | Shareholders (individuals, other corporations, or entities) |
| Management structure | LLC | C-Corp |
|---|---|---|
| sr-only | Flexible management structure | Board of directors, annual meetings, record keeping are required |
| Investment | LLC | C-Corp |
|---|---|---|
| Can issue a stock | No | Yes |
| sr-only | Investors may not be interested in investing | Preferred by investors |
| Fundraising | LLC | C-Corp |
|---|---|---|
| Plan to raise a funds | Investors may not be interested in investing | Preferred by investors |
| sr-only |
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