Question

Difference between LLC, LTD, Inc., etc.?

What are the differences between LLC, Ltd. Corporation, S-Corp, C-Corp and all those are things that end with company names.

I know the difference is mainly the tax advantages but what are they?

7 years ago - 4 answers

Best Answer

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There are really three main provisions of how the company works that makes these companies slightly different. One is how they are taxed, another is the liability owners have in the company's wrongdoings or lawsuits filed against them, and finally the number of shareholders allowed.

C- Corp - is a regular old corporation that we normally think of when we discuss large companies that are publically traded on a market like the New York Stock Exchange or NASDAQ. There is no limit as to the number of shareholders a C-Corp can have. The owners are only liable for wrongdoings of the company up to the extent to their investment in the company. So they can't be held personally liable for all the illegal stuff they do or lawsuits. They get taxed separately as if they were an individual and their owners get taxed on dividends and income earned. So there is double taxation with C-Corps.

LLC is Limited Liability Company - they get taxed like a partnership not like a corporation so there is no double tax and the owners are only taxed on their own income/dividends from the company. The liability terms are also similar to a corp where owners are only liable up to their investment in the company, not personnaly liable. The downside is that passive investment income are double taxed and a lot of states have special LLC taxes especailly if there is one owner. Also in order to "go public" and be traded, a company should be a C-Corp since it requires formal operating governance plans, a board of directors and etc.

LTD is a designation fro private companies in the United Kingdom not in the US - I have no idea how these work.

S Corp - a corporation formed under the terms of Subchapter S of the Internal Revenue Code. This is essentially the same as a LLC but is limited to a maximum of 25 owner/shareholders.

7 years ago

Other Answers

Here is a link that explains the difference between an LLC, an S-Corp and a C-Corp:

www.activefilings.com/en/informatio...

The Ltd. Coroporation is a designation used in the UK. Here is some information about it:

en.wikipedia.org/wiki/Private_compa...

Hope this helps!

by Latrice T - 7 years ago

hey bud go to this link www.corporate.com hope this help you!!

by sclbravo - 7 years ago

You can find S Corp forms at this site:

www.pdftax.com/

by TaxRef - 1 month ago