Start and Grow Your
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Board of directors not required

Unlimited owners (aka “members”) allowed

You’re not personally on the hook for business liabilities

Taxed once or twice; you’re free to choose which can help minimize taxes

Ongoing filings and fees to stay in compliance

LLCs can’t go public

Not recognized globally; you may be taxed as a corporation outside U.S.

Allows for unlimited owners

Can issue shares to founders, employees, and investors

Owners may get preferred stock

Recognized internationally

Preferred by investors

You’re not personally on the hook for business liabilities

Taxed twice—business pays at the corporate level, while shareholders pay on income received

Ongoing filings and fees to stay in compliance

Less management flexibility; must have a board of directors

More admin; strict rules about holding meetings and keeping records

Maximum of 100 shareholders

Owners can only get common stock

Save on self employment taxes

You’re not personally on the hook for business liabilities

Taxed once—only shareholders pay on profits received

Ongoing filings and fees to stay in compliance

Less management flexibility; must have a board of directors

More admin; strict rules about holding meetings and keeping records

All shareholders must be U.S. citizens or residents