Corporation or a limited liability company?
Most people starting a business ask “should I be a S corporation or a LLC?” The real question, however, is “should I be a corporation or a LLC?” Corporations and LLCs are legal entities created under state law and offer the protections provided by state law. Whereas, a S corporation is a tax designation filed with the IRS … what make matters more confusing is that a LLC can be classified as a S corporation for tax purposes. It can also be classified as a C corporation, a partnership or a sole proprietorship, for tax purposes. Whereas, a corporation can only be classified as a C corporation or a S corporation for tax purposes.