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socmum16 ♪ | What is the difference between "LLC" and Inc."? |
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FOREIGN CASH FAST
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A LLC (Limited Liability Company) is a partnership that is easily set up. The profits flow down to the partners and they pay taxes on those earnings. Advantages are that LLCs, like corporations, provide business owners with liability protection. That is, debtors will go after company assets, not your personal assets. Also there is no double-taxation under LLCs.
INCs can go public (LLCs cannot) but are more costly to set up. Venture capital companies prefer to work with corporations rather than with LLCs. Disadvantages are that they must file articles of incorporation, hold directors' and shareholders' meetings, keep corporate minutes and hold shareholder votes on major corporate decisions.
It boils down to what you want to do with your company. Sit down with your lawyer and talk about it at length before making a decision. |
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MoneyMatt
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LLC partners are only liable up to their investment into the company, whereas Corporation (Inc.) partners are totally liable. |
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v b
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Check with a lawyer in YOUR STATE.
An LLC gives you legal protections even if you file as a sole proprietor, a partnership (the defaults) or if you elect to file as an S-corp.
If you incorporate, you also have legal protections, but they will depend on state law and the default is you just became a C corporation unless you elect to be an S-corp (both are protected). |
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starfire
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A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute.
LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner. |
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ʎʞɔoɹ
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An LLC offers more legal protection than an INC |
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