Start-Up Companies:
Inc or
LLC?
Welcome! This section compares the Delaware Corporation to the Delaware Limited Liability Company to help you decide which Entity Type to select. |
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Why Delaware | Inc vs LLC Comparison | FAQs | Prices & Packages
Limited Liability Company Compared to Corporation
|
INC |
LLC |
| Limits Liability |
Yes |
Yes |
| Annual Reports |
Required |
Not Required |
| Annual Shareholder Meeting |
Required |
Not Required |
| Raise capital from investors |
Possible |
Possible |
| Publicly traded |
Possible |
Not Possible |
| Totally Anonymous |
Not Possible |
Possible |
| Annual Entity Tax |
$125 (min.) |
$250 (flat) |
Similarities
- Both offer similar Liability Protection for owners/investors.
- S-Corporations and LLCs are both eligible to "pass through" profits & losses to the owner's personal income tax return (at personal income tax rates), to avoid "double taxation".
Differences
Annual Reports:
- Delaware Corporations must name one officer and the board of directors on the Delaware Annual Report. Owners/Shareholders are not named.
- Delaware LLCs do not file Delaware Annual Reports.
Raising Capital:
- Delaware Corporations can raise capital through private sales to investors or may be listed to be publicly traded on a stock exchange (subject to securities regulations).
- Delaware LLCs can raise capital by selling shares to investors, but cannot be publicly traded on a stock exchange.
Did you know? We Incorporate and form LLCs in all 50 US States. If you are thinking of incorporating in another state an Incorporation Specialist would be happy to answer your questions and provide a price quote.
More Information:
For more information about selecting an entity type (Corporation or LLC) please see the LLC Features and Corporation Features sections of the Learning Center.
For more information about how Corporations, S-Corporations and LLCs are taxed, download our free guides, "About LLCs & Series LLCs" or "About Corporations: S-Corporations, Close Corporations and Not-for-Profit Organizations"
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