LegalAce Business Formations Corporation Comparison Chart Advantages
& Limitations | C Corporation | Subchapter S Corporation | Limited Liability
Company | | (What most corporations
are by default) | (A special corporation
owned
by only a few persons) | | Double Taxation** | Yes | No
(Although it sometimes
does on state taxes) | No
(Unless the owners choose
to set it up differently) | Protects owners from
personal liability | Yes | Yes | Yes | Can sell different classes
of ownership in the company | Yes | No | Yes | Has tax exemptions | No | Yes
(From self employment
tax on profits) | No | Limit on number of owners | No | Yes (No more than 75) | No | Can be owned by other
companies or trusts | Yes | No | Yes | Can own other businesses | Yes | Some restrictions apply | Certain business types such as
banks and insurance companies
cannot be owned by LLC's | | |  |  |  |
**Double Taxation - This occurs when a company gets taxed on what it makes at the same time as the owners get taxed for money they receive.
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