Legal Entities and Tax Elections

When starting out, many searchers ask: What’s the difference between an LLC, an S-Corp, and a C-Corp? This is the wrong question. What you should ask is: What’s the difference between an LLC and a corporation? Or alternatively: What’s the difference between an S-Corp and a C-Corp? Why? LLCs and corporations are legal entities, not tax classifications. S-Corps and C-Corps are tax classifications, not legal entities. An LLC can be taxed as a partnership, an S-Corp, or a C-Corp. A corporation can be taxed as an S-Corp, or a C-Corp. Confused? It's tax. I don't blame you. If it helps, I’ve written articles discussing legal entities and tax classifications. You can read one such article: smb-transactions.com/articles/tax1 While there, don’t forget to sign up for my newsletter to learn more.