Which Is Best For You?

Key differences between LLCs and Corporations

Limited liability companies (LLCs) and corporations have many similarities. Both provide their respective owners with liability protection, perpetual existence, added credibility and professionalism, and tax savings.

This webpage focuses on the key differences between an LLC and a Corporation. For more information on LLCs vs S-Corporations, see our side-by-side comparison chart or see a full write-up on our LLC vs S-Corp page.

In Texas, corporations and LLCs have specific differences with regard to raising capital, inside liabilities, adhering to formalities, taxation, and management. The tabs below outline some of these key differences.

Raising Capital

Corporations are specifically designed for raising capital (i.e. selling shares of stock). LLCs can raise capital too by selling membership interest.

The c-corporation is the preferred vehicle for publicly held companies. If you desire to go public or obtain venture capital, you will most likely have to convert your entity to a c-corporation.

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