Limited Liability Entities

What are the differences between an limited liability company and an S corporation ?

Answer:

Both entities provide the benefits of pass-through taxation to avoid double taxation of profits as well as limited liability for the owners. S Corporations pass-through income to the shareholders who pay no Self Employment tax on that income, While LLC income is subject to self employment tax. S corporations have restrictions which are not applied to limited liability companies. Limited liabilty companies cannot issue stock, but rather, they offer memberships. S corporations, issue stock and are owned by the shareholders. S corporations are managed by the directors and officers, while limited liability companies are managed directly by the members unless they hire managers.
CPAdirectory
Answer Provided by: CPAdirectory

Share This Answer

Looking For More?

View all Limited Liability Entities Questions

View More Questions