What are the main differences between an LLC and an S-corporation?
An LLC has more operating flexibility and less corporate formalities than a S-corporation. For example, an S-corporation cannot have more than 100 stockholders, must hold periodic director’s meetings and must hold an annual meeting of stockholders. However, owners of an S-corporation may be subject to fewer taxes than owners of an LLC. Can I be the only stockholder in my corporation? Yes, a corporation can be formed with only one stockholder. However, corporate formalities, such as director and shareholder meetings, are still required in order to preserve the corporate form and prevent the stockholder from personal liability. Other Types of Business Forms & Structures What is a Sole Proprietorship A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence apart from you, the owner. Its liabilities are your personal liabilities. You undertake the risks of the b
