What is the difference between a Delaware Corporation and a Delaware Limited Liability Company (LLC)?
Like a Corporation, a Delaware LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S. citizens. What is a General C-Corporation? For tax purposes, all Corporations are General C-Corporations when they are formed. This tax status permits them to pay a 15% federal rate on the first $50,000 of taxable income each year. An LLC can elect the C-Corporation tax status. They can deduct health insurance, medical and dental expenses and disability insurance premiums for employees (who may also be stockholders). How does a Delaware Corporation or LLC limit my liability? The stockholde
