LLC and C Corporation, LLC, C Corporation, Difference between LLC and C corporation, differences and similarities between LLC and C corporation, Ebizfiling

Differences between LLC and C corporation in the USA

A complete guide on  the differences between LLC and C corporation


A Limited Liability Company (LLC) is a business form in the United States that combines the personal liability protection of a corporation with the tax efficiency of a sole proprietorship or partnership. It is the most frequent sort of business in the United States. Through stock sales, C corporations provide endless development opportunities, allowing you to attract some very wealthy investors. The number of investors in a C Corporation is also unlimited. We will examine the major differences between an LLC and a C Corporation in this article.

What is an LLC?

In the United States, a limited liability company (LLC) is a type of corporate structure that protects its owners from being found personally liable for the liabilities of the firm. Limited liability companies are hybrid legal structures that incorporate elements of both corporations and partnerships / sole proprietorships.

What is a C Corporation?

A C corporation (C-corp) is a legal company in which the owners, or shareholders, pay their own taxes. Profits earned by a company are taxed at both the corporate and individual levels, resulting in a scenario of double taxation.

What are the differences and similarities between LLC and C corporation?

An analysis of the fundamental differences and similarities between an LLC and C Corporation are given below-




C Corporation


Article of organization

Articles of Incorporation (C-corp is default corporation tax designation)

Choice of taxation structure

Yes. It is a Single Member LLC, SMLLC, or partnership for multiple members by default, as well as a S or C Corporation (by election)

No. The profits of a C Corporation are taxed at the corporate tax rate

Taxes deductible

Deductible on individual tax returns

Not deductible on personal tax returns

Members (Directors) and Shareholders


Members are allowed. Shareholders are not allowed in an LLC

Directors and Shareholders both are allowed in a C corp


A limited liability company (LLC) is not permitted to issue stock shares

C corporations are permitted to issue some stock classes with different voting rights


Investing in equity

It is more challenging to raise money and transfer membership interests

Capital raising is simpler

Retaining Profits

More challenging; whether cash is distributed or not, distribution shares are taxed

It’s simple because dividends are only taxed when they are distributed

Records and paperwork


There isn’t much paperwork needed. Annual state reports must be filed with the proper fee and can be sent in the mail, but most states allow or require online submission as well


There must be official board and shareholder meetings and minutes Additionally, annual state reports must be submitted

Shareholders meeting

Not necessary, it can have recorded actions

Board meetings and formal shareholders are required

Suitable for

Small companies with few investors

Medium to large businesses with several shareholders (including institutional investors)


As a result, many states have approved a new class of for-profit organization known as a “C corporation”. The interests of diverse stakeholders must be taken into account by the directors when making decisions in a C corporation. LLCs are more flexible. The operational agreement between the members may specify that individuals in charge of managing the company must take non-members’ interests into account.


Understanding what a corporation and an LLC are, how they are similar to one another, and how they differ is essential to making the best decision. There are, however, considerable non-tax differences as well. To make the best decision, business owners and their advisors should be aware of all these differences.

About Ebizfiling -

EbizFiling is a concept that emerged with the progressive and intellectual mindset of like-minded people. It aims at delivering the end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad in all the best possible ways.
To know more about our services and for a free consultation, get in touch with our team on or call 9643203209.

Author: team-ebizfiling

The team Ebizfiling believes in providing well researched, truest and verified information to its clients and readers. The team works continuously towards enhancing to make it a no. one platform not only for providing the best services but also for providing information to everyone through the website.

Follow Author

Leave a Reply

Your email address will not be published.


  • Client review, Ebizfiling


    30 Sep 2021

    Was a great experience and value for money service, recently did a company incorporation with ebizfiling.

  • Client Review, Ebizfiling


    09 Nov 2017

    I appreciate your service to get the Certificates will benefit the people who are seeking to start a business. The time you took is very short time to get a certificate is excellent. Definitely I will refer your service to others . Thank you for your excellent service. Regards, S.D.Antoni Martin Pondicherry

  • Client Review, Ebizfiling


    15 Dec 2018

    Excellent Service!

Hi, Welcome to EbizFiling!

Hello there!!! Let us know if you have any Questions.

Thank you for your message.

whatsapp Call Now Button