What are the disadvantages of starting a LLC rather than a Limited Company?
A Limited Liability Company (LLC) has “members” instead of shareholders, which a corporation has. An LLC dies with its members, a corporation (aka Private Limited Company, Inc, Corp., etc) can continue since stocks can be willed to one’s heirs. That’s the main disadvantage with LLC if you would want, for example, to build up a company for your child to continue after your death. If you plan to grow your business large enough and profitably enough to eventually go public, of course, an LLC could never go public since there is no stock. Very, very few types of businesses are suitable for going public to begin with, and even fewer have any potential to ever go public. Tax-wise, a corporation is a separate entity, taxed separately. Any dividends distributed to shareholders are taxed again. With an LLC, the members pay taxes since profits flow through directly, but it does eliminate double taxation.
