Name: LLC vs C Corp
Duration: 2:53
Description: Trying to decide between an LLC and a C Corp? Here’s some helpful info about the differences between these two business entity structures from Block Advisors — the small business experts.

C CORP

What is a C Corp?

In a C Corp, your company is positioned as a legal entity separate from its owners or shareholders. Most traditional corporations, like the ones that are traded on the stock market, are C Corp.

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How can a C Corp help your business?

Typically, C Corps are larger businesses with more complex needs. The core advantages of the structure can help such business continue their growth trajectory.

Increased protection

Forming a C Corp can help limit your personal responsibility for certain business liabilities.
Room to grow

C Corps have no limits on the number of shareholders and can have foreign owners.
Connection to capital

A C Corp can raise money by selling stock to investors and become publicly traded.

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Not sure if a C Corp is for you?

Answer a few quick questions, and our Help Me Choose tool can help you move closer to finding the right business structure fit.

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Compare C Corp to other business structures

Product comparison	C Corp	LLC + S Corp Learn more	LLC Learn more	Nonprofit Learn more
Provides limited liability protection	Provides limited liability protection	Provides limited liability protection	Provides limited liability protection	Provides limited liability protection
Can be for solo business owners	Can be for solo business owners	Can be for solo business owners	Can be for solo business owners	Can be for solo business owners
Can be for businesses with multiple owners	Can be for businesses with multiple owners	Can be for businesses with multiple owners	Can be for businesses with multiple owners	Can be for businesses with multiple owners
Income is reported on business owner’s individual tax return	Income is reported on business owner’s individual tax return	Income is reported on business owner’s individual tax return	Income is reported on business owner’s individual tax return	Income is reported on business owner’s individual tax return
Can apply for 501(c)(3) status in certain circumstances	Can apply for 501(c)(3) status in certain circumstances	Can apply for 501(c)(3) status in certain circumstances	Can apply for 501(c)(3) status in certain circumstances	Can apply for 501(c)(3) status in certain circumstances
Businesses making at least 40K in annual profit may see a tax benefit	Businesses making at least 40K in annual profit may see a tax benefit	Businesses making at least 40K in annual profit may see a tax benefit	Businesses making at least 40K in annual profit may see a tax benefit	Businesses making at least 40K in annual profit may see a tax benefit
Pays owner out a salary for services provided	Pays owner out a salary for services provided	Pays owner out a salary for services provided	Pays owner out a salary for services provided	Pays owner out a salary for services provided
Can issue stock	Can issue stock	Can issue stock	Can issue stock	Can issue stock
Double taxation applies	Double taxation applies	Double taxation applies	Double taxation applies	Double taxation applies
Must appoint a board of directors	Must appoint a board of directors	Must appoint a board of directors	Must appoint a board of directors	Must appoint a board of directors

Tax implications for your business:

As a C Corp, the entity pays corporate income tax and must file a separate tax return for the business. The shareholders pay tax on their individual dividends. Visit our resource center to examine the key tax considerations for different types of corporations.

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Other considerations
- Often used by larger companies with many employees
- Can have owners who are not U.S. citizens or residents
- Must appoint officers and maintain a board of directors
- Most states will require an annual report filing
- Quarterly tax payments are generally also required
- Comes with more complicated corporate governance and compliance formalities

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Check out our resource center to learn more about taking your business from self-employed to an LLC, C Corp, or S Corp.