LLC vs. Inc

Key Differences






LLC and Inc Definitions
Inc
Inc
Inc
Inc
Inc
Inc
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.