Which Business Structure is Right for You: LLC vs S Corp?

Learn the advantages and disadvantages of LLC vs S Corp to make an informed decision for your business.

Save 90% on your legal bills

What is an LLC?

An LLC stands for Limited Liability Company, and it's a popular choice for small businesses and entrepreneurs. One of the main advantages of an LLC is that it offers limited liability protection to its owners, also known as members. This means that if the business is sued or incurs debt, the personal assets of the members are protected from creditors.

What is an S Corp?

An S Corp, on the other hand, is a type of corporation that is taxed differently than a traditional C Corporation. S Corps are pass-through entities, meaning that the business income is passed through to the shareholders, who report it on their personal tax returns.

What are the advantages of an LLC?

LLCs offer limited liability protection to their owners, making them a popular choice for small businesses and entrepreneurs. They are also relatively easy to form and maintain, and they offer flexibility in terms of ownership and management.

What are the disadvantages of an LLC?

One of the main disadvantages of an LLC is that it can be subject to double taxation, meaning that the business income is taxed at the corporate level and then again at the individual level. Additionally, LLCs can be subject to self-employment taxes, which can be costly.

What are the advantages of an S Corp?

S Corps offer pass-through taxation, which can reduce the amount of taxes they owe. They also offer limited liability protection to their shareholders, similar to LLCs.

What are the disadvantages of an S Corp?

One of the main disadvantages of an S Corp is that it is only available to small businesses with 100 or fewer shareholders. Additionally, S Corps are subject to strict rules regarding ownership and management, and they are required to meet certain tax and reporting requirements.

Which business structure is right for you?

The answer depends on your specific needs and goals. If you're looking for flexibility and limited liability protection, an LLC may be the right choice. If you're looking for pass-through taxation and limited liability protection, an S Corp may be the right choice.

How do I choose the right business structure?

Ultimately, it's important to consult with a business attorney or accountant to determine which business structure is best for your business. They can help you weigh the advantages and disadvantages of each structure and make an informed decision.

Legal help, anytime and anywhere

Join launch list and get access to Cimphony for a discounted early bird price, Cimphony goes live in 7 days
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Unlimited all-inclusive to achieve maximum returns
$399
$299
one time lifetime price
Access to all contract drafting
Unlimited user accounts
Unlimited contract analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
For a small company that wants to show what it's worth.
$29
$19
Per User / Per month
10 contracts drafting
5 User accounts
3 contracts analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Free start for your project on our platform.
$19
$9
Per User / Per Month
1 contract draft
1 User account
3 contracts analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Lifetime unlimited
Unlimited all-inclusive to achieve maximum returns
$999
$699
one time lifetime price

6 plans remaining at this price
Access to all legal document creation
Unlimited user accounts
Unlimited document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Monthly
For a company that wants to show what it's worth.
$99
$79
Per User / Per month
10 document drafting
5 User accounts
3 document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Base
Business owners starting on our platform.
$69
$49
Per User / Per Month
1 document draft
1 User account
3 document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial

Save 90% on your legal bills

Start Today