Deciding the best type of entity for your business usually comes down two choices: a corporation or an LLC. To make the right choice for you, it’s best to have a good understanding of how the differences between these two entity types impact the day-to-day operations, and possibly even the long-term success, of your closely held business.

Although you’ll need to consider your tax situation, many significant differences between a corporation and an LLC have nothing to do with tax. But, they affect things like control of the business, formalities over time, and ability to sell or transfer business interests, to name a handful. 

This chart by CT’s compliance experts helps you evaluate the nontax differences when choosing between a corporation and an LLC. Highlighting considerations in 10 areas, it provides a convenient summary of some advantages and disadvantages in each area. 

Topics Included

1. Management Control
2. Sales of Interests
3. Formation Documents
4. Management Documents
5. Meeting Requirements
6. Judgment Creditors
7. Fiduciary Duties
8. Dividends
9. Nonprofit Entities
10. Benefit Corporation and L3C