The LLC has the most advantages when compared to a sole proprietorship or partnership. However, not all businesses are at a stage when an LLC makes good business sense. Compared to corporations. LLCs are similar to corporations in that they offer limited liability protection to its owners.
Then, is it worth it to become an LLC?
For one, registering as an LLC requires a bit more paperwork than is required for a sole proprietorship. A sole proprietorship is an individually-run business that has not registered with the state as a legal entity (a corporation, partnership, or LLC). However, like LLCs, they have their pros and cons.
What is the difference between a corporation and an LLC?
Corporation characteristics. When evaluating types of corporations, many business owners consider taxation to be the most noteworthy difference between S corporations and C corporations. In a nutshell, an S corp is a “pass-through” tax entity, like the LLC. In contrast, C corps are taxed as separate entities.