Entity Comparison
Starting Your Business
The following table provides a look at the LLC vs Corporation, and LLC vs S-Corporation.
C-Corporation View Details ![]() |
LLC View Details ![]() |
S-Corporation View Details ![]() |
|
Type of Organization |
Stock, there may be different classes. |
Membership interests. There may be different classes of membership. |
One class of stock. Which may be voting or non-voting. |
Eligible Owners |
No restrictions. | No restrictions. | 100 shareholder limit. No non-individual and no non-resident alien shareholders. |
Management |
Managed by director(s) and officer(s). |
Two Management Types – Managed by Manager – Managed by Members |
Managed by director(s) and officer(s). |
Ownership Allocations |
None. Dividends must be paid based upon stock ownership. |
Permitted if the allocations have substantial economic effect. |
None. Income, gain, and loss pass-through to the shareholders based on the percentage of shares owned. |
Liability Protection |
There is limited liability for shareholders, officers and directors. |
There is limited liability for members and managers (if applicable) |
There is limited liability for shareholders,officers and directors. |
Duration |
Perpetual | Dissolves at the time specified in the Operating Agreement or upon the loss of a member unless other members agree to continue. |
Perpetual |
Transfer of Ownership |
Shares freely transferred. |
There may be restrictions under certain state laws. |
Shares can be transferred only to eligible S-corporation shareholders |