Читать книгу Ultimate LLC Compliance Guide - Michael Spadaccini - Страница 14
LLCS VS. S CORPORATIONS
ОглавлениеWhile both S corporations and LLCs provide limited liability and partnership-like taxation, they differ in significant ways, as shown in this table. There are other important differences, and legislation that makes S corporations more attractive to investors was passed by Congress in 1996. You should work closely with your tax advisor in choosing any entity for your business.
| S Corporation | LLC | |
|---|---|---|
| Owners (Number) | No more than 75. All shareholders must consent to the election at the time it is made. | No maximum and no minimum. All states allow single-member LLCs. |
| Owners (Eligibility) | Individuals, U.S. citizens and resident aliens, death estates, bankruptcy estates, and certain tax-exempt organizations. | All people and entities eligible to own S corporations plus corpora-tions, partnerships, most trusts, nonresident aliens, and pension plans. |
| Nature of Ownersip | Single class of stock. | Different classes and priorities of ownership permitted. |
| Essential Documents | Articles of incorporation, bylaws, stock certificates, stock ledger, IRS and state election of S corporation status. | Articles of organization, operating agreement (optional) |
| Management | Managed by board of directors and officers. | Managed either by the owners or by managers appointed by the owners. |
| Tax treatment | The entity is not taxed: profits and losses are passed through to the shareholders. | The entity is not taxed: profits and losses are passed through to the members. |
