Limited Liability Company Vs. C-Corp.

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While there are a lot of advantages and disadvantages that go along with each kind of business ownership, I think the two options I like most are the LLC, and C-Corp options. LLC stands for, Limited Liability Company and C-Corp stands for, Corporation. The LLC is currently the most realistic option, while the C-Corp is more of a goal. While both of these are different, they both share one HUGE advantage and that is the limited liability that comes with them. Today's world is full of people looking for any reason to sue you. Choosing one of these two options makes the company reliable for any legal issues versus the owner/owners. So in short when they sue, they can only take the LLC's assets, not the owners.
One awesome advantage that comes with an LLC, other than the protection from legal liabilities like stated above, is the ease of getting it. They also take much less paperwork and effort to get started so they are fairly cheap. Another nice plus that comes with an LLC is that you have fewer restrictions on how you can divvy out your money(profit sharing). In my opinion corporations actually have two of the best advantages out of all the available options. Being a corporation allows you to sell stock, so you …show more content…

The largest being, that if you even want to start one, it requires and ridiculous amount of start-up. Another depressing fact is that corporations can get taxed twice. Once when they make a profit, and then when they split it. Last but not least this option is highly regulated and there is a seemingly endless amount of paperwork involved. On a lighter note, the disadvantages of an LLC are much more feasible. The biggest bummer about owning an LLC is that you have to pay a self-employment tax. But when you think about what the tax is for it makes sense. The other disadvantage is that the shelf life for an LLC is shorter than the other

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