Row#2

Tax 9930
liability but is taxed twice. First at the corporate level and next when corporations pay out
dividends to shareholders, those dividend incur income-tax liabilities for the shareholders who
receive them. There are three tiers of people in a corporation. Bottom level are shareholders, who
in turn vote for Board of Directors and BOD elect the officers. In a small corporation, the LLC
operate as a separate entity. It is automatically taxed as a partnership so it does not pay taxes.
None of the members are liable for debts and obligations beyond their contribution. LLC has no
shareholders shareholders and board may be the same persons.
In an S corporation, there is no liability to the shareholders. It is taxed as a partnership. For a
corporation to become an S corporation, the corporation must have no more than 100
shareholders, shareholders must be individuals, corporation must have only one class of stock
and no shareholder can be nonresident alienbut managers. Thus, LLC is a flexible business entity
that maybe tailored to many business.