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In regards to tax, what is the difference between a LLC and a Corporation?

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A C Corporation experiences double taxation in that both the Corporation and the shareholders pay tax separately on the same earnings- corporate earnings and dividends respectively.  S Corporations are similar to LLCs in that they both have “pass through” income, meaning that the income (or losses) pass through directly to the owners.  But the main difference between the two is that LLCs have far less administrative burden and LLCs do not have restrictions on who can be an owner (while a S Corporation does).  S Corporations also have other advantages and disadvantages as compared to LLCs, so the choice must be carefully weighed.

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