Limited Liability Entities
What are the differences between an limited liability company and an S corporation ?
Both entities provide the benefits of pass-through taxation to avoid double taxation of profits as well as limited liability for the owners. S Corporations pass-through income to the shareholders who pay no Self Employment tax on that income, While LLC income is subject to self employment tax. S corporations have restrictions which are not applied to limited liability companies. Limited liabilty companies cannot issue stock, but rather, they offer memberships. S corporations, issue stock and are owned by the shareholders. S corporations are managed by the directors and officers, while limited liability companies are managed directly by the members unless they hire managers.
Need Professional Help?
If you need help with "Limited Liability Entities" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.