What is the main difference between an LLC and an S-Corporation?
An LLC has more flexibility and fewer restrictions than an S corporation. An S corporation cannot have more than 100 stockholders, cannot issue more than one class of shares, and is subject to more formalities than an LLC. However, owners of an LLC are required to pay Social Security and Medicare taxes on profits. Corporate stockholders are not required to pay these taxes on profits over and above the stockholders’ salaries. Q: What is the main difference between a C-Corporation and an S-Corporation? A: C corporations are subject to double taxation. This means there is one tax at the corporate level on the corporation’s net income, and another tax to the shareholders when the profits are distributed. S corporations have only one level of taxation. All of their income is allocated to the stockholders. However, C corporations have greater tax planning flexibility and can shield stockholders from direct tax liability. In addition, S corporations are subject to limitations, such as the num
