LLC vs S Corp vs C Corp: Which Business Structure Fits You Best?
Answer a few questions about your business goals and needs to receive a customized comparison of LLC, S-Corporation, and C-Corporation business structures.
Step 1: Business Basics
Step 2: Business Finances
Step 3: Business Operations
Step 4: Future Plans
Step 5: Review Your Information
Please review the information below before generating your business entity comparison.
Analyzing your business needs...
Your Personalized Business Entity Comparison
Based on your inputs, here's how different business structures compare for your specific situation:
- Small to medium-sized businesses
- Businesses with single or few owners
- Real estate investments
- Businesses seeking liability protection with minimal formalities
- Businesses seeking outside investors/venture capital
- Businesses planning to go public
- Businesses with complex ownership structures
- Owner-employee businesses with significant profits
- Businesses with substantial income subject to self-employment tax
- Small to medium businesses with US-citizen owners
- Businesses with foreign owners or investors
- Businesses requiring multiple classes of stock
- Businesses with more than 100 shareholders
- Startups seeking venture capital
- High-growth startups seeking outside investors
- Businesses planning to go public
- Large enterprises with many shareholders
- Companies needing multiple classes of stock
- Businesses planning to reinvest profits for growth
- Small businesses distributing most profits to owners
- Simple business structures with few owners
- Businesses looking to minimize formalities and paperwork
| Features | LLC | S-Corporation | C-Corporation |
|---|---|---|---|
| Match Score | 0% | 0% | 0% |
| Taxation | Pass-through | Pass-through | Double taxation |
| Liability Protection | Good | Good | Strong |
| Management | Flexible | Formal | Most Formal |
| Ownership Restrictions | None | 100 shareholders max, US citizens only | None |
| Raising Capital | Limited | Moderate | Excellent |
| Formalities | Minimal | Moderate | Extensive |
| Best For | Small businesses, Real estate | Owner-employee businesses | High-growth startups, IPO plans |
The importance of choosing the right entity type
When starting a business, choosing between five different types of business structures can feel overwhelming. Partnership, Limited Liability Company (LLC), Sole Proprietorship, S Corporation, and C Corporation each come with distinct tax implications and operational requirements.
While C corporations face a 21% federal tax rate and double taxation, S corporations offer advantages like pass-through taxation and up to 20% deduction on qualified business income. However, these structures also differ in ownership flexibility – S corporations are limited to 100 U.S. shareholders, whereas C corporations can have unlimited shareholders, including foreign investors.
Whether you’re launching a startup or restructuring an existing business, understanding these differences is crucial for your company’s financial future. We’ll break down the key features, tax implications, and operational requirements of LLCs, S Corps, and C Corps to help you make an informed decision. You can also use our AI-powered Business Structure Picker tool to get personalized recommendations based on your specific business needs.