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http://cpajournal.blogspot.com/1.LLCs Vs. S Corporations2.ENTITY COMPARISON TABLE
 
LLCs Vs. S Corporations
S CorporationLLC Number of Owners No more than 75. All shareholdersmust consent to the election at the timeit is made No maximum limit. In some statesat least 2 members are required. Nature of theOwnersIndividuals, US citizens or permanentresidents. decedent's estates, bankruptcy estates, certain trusts,charitable organizations and certainqualified plan trusts.All S Corporation eligible owners, plus, non-residents, corporations,limited or general partnerships,most trusts, and pension plans. Nature of ManagementManaged by board of directors andofficersCan be managed either by theowners (Member-Managed) or byone ore more Managers (Manager-Managed). Nature of OwnershipSingle class of stock Different classes and priorities of ownership are allowed.
 
http://cpajournal.blogspot.com/ENTITY COMPARISON TABLEHere is a comparison table among different types of business structures. Please noticethat only LLCs and Corporations are chartered entities.S Corporations are not a special business entity. They are general corporation that haveadopted an special tax treatment.
 
http://cpajournal.blogspot.com/
 
CharacteristicsFormationDurationLiabilitySimplicity of OperationManagementTaxationPass ThroughIncome/LossDoubleTaxationCost of CreationRaising CapitalTransferabilityof Interest GeneralPartnershipLLC S Corp CorporationAgreement of  parties involved. No permissionrequiredFile with state for  permissionFile with state for  permissionFile withstate for  permissionDissolved bydeath of partner or bankruptcyTypically limited toa fixed amount of timePerpetualPerpetualPartners haveunlimited liabilityMembers nottypically liable for the debts of theLLCShareholders aretypically not personally liablefor the debts of thecorporationShareholdersare typicallynot personablyliable for thedebts of thecorporationRelatively fewlegalrequirementsSome formalrequirements butless formal thancorporationsFormality of boardof directors,officers, annualmeetings andannual reportingFormality of  board of directors,officers,annualmeetings andannualreportingTypically each partner has anequal voice unlessotherwisearrangedMembers haveoperatingagreement thatoutlinesmanagementThe corporation ismanaged by the board of directorswho are elected bythe shareholdersThecorporation ismanaged bythe board of directors whoare elected bytheshareholdersEach partner paystax on his/her share of theincome and candeduct lossesagainst other sources of incomeIf properlystructured there isno tax at the entitylevel. Income/lossis passed through tomembers of theLLC No tax at entitylevel. Income / lossis passed through tothe shareholdersCorporationis a taxableentity.YesYesYes No, corporatelosses can't be deducted byshareholder  NoNoNoYes NoneFiling fee with the Filing fee with the Filing fee
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