what is the difference between LLC and INC.?

Question

If you start a small business, would that be an LLC - and as the business grows and expands, you change it to INC?

Answer 1

LLC is a Limited Liability Corporation. Yes, you can change it to a C Corporation but usually you would not want to. If you qualify for a LLC, why would you want a C-Corp?

Answer 2

There are many different ways to organize a business. They all deal with 3 basic things 1)ownership percentage and transferability 2)Taxes 3)liability. So choose wisely

sole proprietor: owner takes all legal responsibility and taxes

partner ship: same but 2 or more people

Limited sole proprietor: gives some liability protection.

LP (limited partnership): Gives a form of liability protection can't

LLC (limited liability company): gives a form of liability protection and has Pass through tax to the owners, limits the way ownership can be transferred.

S corp: like what people think of a corporation with share holdings, meetings, minutes, typical C corp. corporate structure, and ownership structure like a C corp with stocks etc. However it allows pass through tax status to each owner based on the percentage of their holdings

then the C corp or corporation or Incorporated.

there could be more by now, I haven't dealt with this in about 8 years, I formed an LLC after reviewing the all.

for a small business with a couple owners an LLC is the simplest with the most benefits. If you want to have the stocks for owner ship then S corp though it's more cumbersome. You can be a sole owner with at C corp and hold 100% of the shares but the tax benefit might not be as good. Talk to an accountant that deals with businesses like yours to determine what's best for your tax situation.

Answer 3

LLC is liscenced legal counsel and INC. is a corporation or trust

Answer 4

LLC limited libility company
INC ingorporated,To unite (one thing) with something else already in existence.