Delaware Corporation vs L.L.C

  L.L.C Company Corporation Company
Governance Structure

All members are bound in an Operating Agreement.

The Operating Agreement determines all issues in the company.

The members may manage the company themselves or they may hire an external manager.

There are 3 tiers of power:

Shareholders: owner of the company

Directors: manage the major business actions

Officers: carry out day-to-day business activities

Federal Taxation

IRS considers single-member L.L.C a disregarded Entity and a multi-member LLC a Partnership.

The Entity / Partnership must fill in Employer Identification Number (EIN) - also called Federal Tax ID Number.

IRS taxes 3 different ways:

 

- C-Corporation: pays taxes on profits each year and may choose to distribute dividends to shareholders. If the shareholders are a small, tight-knit group, this is often referred to as double taxation.

- S-Corporation: the tax liability on the profits and losses of the company are passed through to the shareholders. They must pay the taxes.

- Tax Exempt: the company must file IRS Form 1023 and qualify for tax exempt status by engaging in a qualifying charitable, religious or public service purpose.

Privacy No Annual Report required

Annual Report must state:

- Corporation’s physical address

- All Directors name & address

- One Officer’s name & address


Relative FAQs

  1. Case Study - Delaware L.L.C or Corporation?
  2. Why Choose OffShoreCompanyCorp to Form a Corporation in Delaware?
  3. Obtaining a Tax ID or Employer Identification Number (EIN) for a Delaware Company
  4. Complete Delaware Company Kit package includes
  5. Why Form a Delaware LLC
  6. What Is a Delaware Limited Liability Company (LLC)?
  7. Seven Major Delaware LLC Advantages
  8. What is Delaware Franchise Tax?
  9. Delaware (United State ) Corporation or Limited Liability Company (LLC) Formation- How it Works?
  10. What is a General Corporation in Delaware?
  11. What is included in Delaware Company Kit?
  12. Compare Business Entities in Delaware