LLC vs. Inc

LLC and Inc are the types of business entities related to business structure in case for starting a company. LLC stands for Limited Liability Company which is a business structure providing limited liability to its owners. Inc. Is short for Incorporated offering liability protection interns of ownership structure, rules, management and tax profits different from LLC. Both of the LLC and Inc. have limited liability. Inc. Is better for large business entities while on the other hand LLC is suitable for smaller business with few shareholders. Taxation is double in Inc. While in LLC there is single taxation by passing the profit or loss to members. LLC has an advantage over the Inc. that LLC does not the make limit upon the number of owners while Inc. make restrictions upon the number of owners. Inc. or corporation may issue the shares of stock for investors to attract while on the other hand LLC goes in disadvantage as the stock can’t be issued. Too much paperwork is required for starting the business in Inc. while on the other hand in LLC there is not much paperwork.

Key Differences

LLC stands for Limited Liability Company while on the other hand Inc. Is short for Incorporated

Is better for large business entities while on the other hand LLC is suitable for smaller business with few shareholders.

In Inc. Shareholders are the owners while in LLC members are not the owners.

Harlon Moss

Jul 13, 2016

LLC gives the choice of taxation structure while Inc. Does not give the choice of taxation structure.

LLC has an advantage over the Inc. that in LLC profit and loss are passed through to the owner’s individual tax return.

Aimie Carlson

Jul 13, 2016

In Inc. Management level compromise of shareholders, directors and officers while in LLC only members and managing membrs of the company are at management level.

In Inc. Meeting of shareholders is required periodically while in LLC there is no need of periodic meetings but activities should be recorded.

Aimie Carlson

Jul 13, 2016

Taxation is double in Inc. While in LLC there is single taxation by passing the profit or loss to members.

Samantha Walker

Jul 13, 2016

LLC has an advantage over the Inc. that LLC does not the make limit upon the number of owners while Inc. make restrictions upon the number of owners.

Too much paperwork is required for starting the business in Inc. while on the other hand in LLC there is not much paperwork.

Aimie Carlson

Jul 13, 2016

or corporation may issue the shares of stock for investors to attract while on the other hand LLC goes in disadvantage as the stock can’t be issued.

Samantha Walker

Jul 13, 2016

or corporation allow income splitting which may be quite helpful for lower overall tax liability while on the other hand LLC has a disadvantage that it don’t allow income splitting to lower tax liability.

LLC and Inc Definitions

Inc

Alternative spelling of Inc

Inc

Abbr of incoming

Inc

(programming) increment

Inc

(knitting) increase

Inc

A Japanese measure of length equal to about two and one twelfth yards.

Inc

A heterogeneous collection of groups united in their opposition to Saddam Hussein's government of Iraq; formed in 1992 it is comprised of Sunni and Shiite Arabs and Kurds who hope to build a new government

What is LLC?

LLC has an advantage that in LLC profit and loss are passed through to the owner’s individual tax return. Very small paperwork is required to start a business in LLC. LLC does not the make limit upon the number of owners. Chocie of taxation structure is given in the LLC. Management level consists of members and managing members. LLC is preferred for small business with few shareholders. All the activities of the members should be recorded but no need of periodic meetings.

What is Inc?

Inc. stands for Corporation. Too much paperwork is required to start a business in Inc. Inc. make restrictions upon the number of owners. Choice of taxation structure is not given in the Inc. Management level is composed of shareholders, directors and officers. Inc. is preferred for large business entities. There is periodic schedule for the meeting of the shareholders. Investors are attracted by issuing the shares of the stock. Income splitting is allowed which is much helpful for lower overall tax liability.

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LLC vs. Inc

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