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What is the difference between an LLC an S corporation and a C corporation Video

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In this tutorial, Steve Pipenger, a New York based lawyer answers my question of what is the difference between an LLC an S corporation and a C corporation. Steve suggests that the core question should be what is the difference between an S corporation and a C corporation. Additionally, the LLC is a company while the S and C are corporations. So that other question to ask is what is the difference between a company and a corporation.

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Steve suggests that the right question to as is what is the difference between an LLC an a corporation. There are two kinds of corporations, an S corp and a C corp. An S corp can only have 100 shareholders. All shareholders in an S corp have to be individuals, not companies. All S corp shareholders have to be permanent US residents, or citizens.

The biggest difference between an LLC and a corporation is how they are taxed. An LLC is a pass through entity which means that it is not taxed. People who have ownership in an LLC are called members, rather than stock holders. Another difference between an LLC and a corporation is that an LLC has less formalities in terms of board of directors and meetings. An LLC is more flexible.

Another difference between an LLC and an S corp is that if you want to go public one day, you should probably become an S corp.

Another difference between an LLC and a corporation is that an LLC is required to publish itself in the newspaper.

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