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An&nbsp;S Corporation (S Corp) is a tax classification under U.S. federal law that allows corporations to pass corporate income, losses, deductions, and credits directly to their shareholders, thereby avoiding double taxation. To qualify, a corporation must meet specific criteria, including having no more than 100 shareholders, all of whom must be U.S. citizens or residents, and having only one class of stock.
A Limited Liability Company (LLC), on the other hand, is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership. LLCs can choose how they wish to be taxed: as a sole proprietorship, partnership, C corporation, or S corporation. This flexibility allows LLCs to select the tax treatment that best suits their business needs.

An S Corporation (S Corp) is a tax classification under U.S. federal law that allows corporations to pass corporate income, losses, deductions, and credits directly to their shareholders, thereby avoiding double taxation. To qualify, a corporation must meet specific criteria, including having no more than 100 shareholders, all of whom must be U.S. citizens or residents, and having only one class of stock.

A Limited Liability Company (LLC), on the other hand, is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership. LLCs can choose how they wish to be taxed: as a sole proprietorship, partnership, C corporation, or S corporation. This flexibility allows LLCs to select the tax treatment that best suits their business needs.

What's an S-Corp and how different is it from an LLC?

Changing Accountants: A Client Guide