LLC S-corp C-corp
Limited Liability Protection Yes Yes Yes
Tax Structure Pass-through, with option to chose to tax as S-corp (form 2553) or C-corp Pass-through (no corporate tax) Corp rates (form 1120) + Personal (form 1040) = Double taxation
Can Reduce Payroll Tax (FICO) by issuing “distributions” vs. Salary NO (unless chose to be taxed as S-corp) Yes Yes
Corporate Tax Rates (can be lower until $75K) No No Yes
Requirements Annual / Biennial Reports Writing Bi-laws, Selecting Directors, Annual Share-holder Meetings, etc Writing Bi-laws, Selecting Directors, Annual Share-holder Meetings, etc
Sell Stock / Raise Capital NO Yes Yes (and can go Public / IPO)
Change or Sell Ownership Shares NO Yes Yes
Ownership Restrictions NO Yes – Maximum 100 LOCAL Individual (not business entities) members No