LLC vs. S Corp vs. C Corp

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As we work with entrepreneurs in setting up the structures for their new ventures, one of the first questions we are asked is what is the right entity to use. For most entrepreneurs, we find that the most frequently used entities are limited liability companies ("LLCs") traditional corporations ("C Corps") and S corporations ("S Corps"). Each of these entities are similar in many areas and generally provide limited liability protection to their owners from the entities' creditors, including those that make claims in disputes with the entity. However, because these entities also differ in many ways, one entity is often a better choice for your business. The following is a discussion of the differences that most typically impact our clients.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Stephanie Chandler | Attorney Advertising

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