What are the Differences in Starting an LLC vs. Starting an S Corporation?
What are the Differences in Starting an LLC vs. Starting an S Corporation?Attorney Robert Warwick addresses the question of differences in cost and difficulty of forming an LLC vs. an S Corporation. Answer: Both corporations and LLCs are formed under state law, therefore the cost or difficulty of forming either entity will depend on the requirements of the particular state. In Virginia, for example, a corporation or an LLC is formed by filing a document (articles of incorporation for a corporation,; articles of organization for an LLC) with the State Corporation Commission (“SCC”). The documents are similar, the principal difference being that because a corporation has shares of stock, the articles of incorporation must include the number of shares that the corporation is authorized to issue and a description of any different classes of shares (note, however, that an S corporation may have only one class of shares).
