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LLC vs. Inc. - which 3 letters merit being placed at the end of your company name and why?

Incorporation vs LLC - Should I incorporate or form an LLC? Anybody who has formed an incorporation or a limited liability company has asked themselves this question. See what the differences are in the Incorporation and LLC comparison below.

Incorporation vs LLC

The question is what is the best choice for your business? Form a corporation or an LLC? In order to determine which is right for your goals, let's look at the similarities and differences between the two.

The main similarities between LLCs and corporations are:

  • Both Incorporation and LLC are legal entities created by a state filing
  • Both Incorporation and LLC help protect personal assets from your business liabilities
  • Both Incorporation and LLC have few ownership restrictions

The main differences between LLCs and corporations:

  • Corporations issue stock and are owned via stock. An LLC does not issue stock. Like partnerships, an Limited Liability Company is simply owned by the members and/or the managers of the company.
  • Corporations are required to hold annual meetings and to keep written minutes. An LLC does not have this requirement, resulting in less official paperwork.
  • An Incorporation is a taxable entity, and they must pay taxes on their profits at the corporate tax rate. An LLC, like a sole proprietor, partnership and S Corporation, is a "pass-through" tax entity. This means that the profit or loss generated by the business is reflected on the personal income tax return of the owners, thus avoiding the double taxation of paying first corporate tax on profits and then personal income tax on distributions of profits.

Just remember that whether you're considering a corporation or an LLC, it is very important to form a business entity that protects your personal assets and your family.

Who Can Form a LLC?

Because of their flexibility and relative simplicity, the LLC is well suited for both start-up businesses and more mature businesses. LLCs have been gaining speed in recent years. In fact, new LLC formations now out-number new corporation formations in several states. LLCs have several "ease of use" advantages. Also, as the needs of your company changes, the existing business structure can be amended or a new business structure can be formed quickly, easily and affordably.

Costs to Consider
Online LLCs can cost from $100 to $500 plus state fees depending on the depth of scope of the package you choose. The basic package that online services offer will most likely cover all the fundamentals you will need . Some extras found in "gold" or premium packages may include but are not limited to a prepared application for your Tax Identification Number , name search and registration and rush service . The same basic services from an attorney can cost upwards of $1000.

How Long Will This Take?
You can expect to spend 20 to 30 minutes filling out forms if creating an LLC online. Most services will allow you save your work and come back later so all the information does not have to be inputted in one sitting. An LLC will usually take 20 to 35 days to form after the articles are filed depending on the state. Your final package is then sent to you shortly thereafter.

Limited Liability Corporations Fast, Easy and Smart
Many companies that offer online LLCs provide their clients with a 100% satisfaction guarantee on their services, available customer service and legal document reviewers that examine your information for completeness and other common errors. Just as each LLC is unique, the diversity of services offered by online companies is immense. For a complete listing of reviewed sites that offer LLCs online and how they compare as far as ease of use, price, specific services offered and customer service please see below.

Sites that offer Business Formation Comparisons

LegalZoomAvg Review Score: 4.00
Click Here to go to LegalZoom
Click Here to read LegalZoom customer reviews
Legal Spring Comments: ... that are dedicated to customer service, which is open from 7:00am to 6:00pm
  • They have over 250 people ... more ...

  • BizFilingsAvg Review Score: 3.00
    Click Here to go to BizFilings
    Click Here to read BizFilings customer reviews
    Legal Spring Comments: ... relationships such as these speak for themselves!

    If you have experience with BizFilings, please enter a ... more ...

    The Company CorporationAvg Review Score: 2.00
    Click Here to go to The Company Corporation
    Click Here to read The Company Corporation customer reviews
    Legal Spring Comments: ... personally liable in a law suit for a pierced corporate veil. That's a strong reason to use this service to form ... more ...

    MyCorporation.comAvg Review Score: 4.00
    Click Here to go to
    Click Here to read customer reviews
    Legal Spring Comments: ... is one of the Incorporation / LLC formation powerhouses on the Internet today. Very few online Incorporators have ... more ...

    IncorporateFastAvg Review Score: 3.00
    Click Here to go to IncorporateFast
    Click Here to read IncorporateFast customer reviews
    Legal Spring Comments: ... most of the really good online Incorporation service providers, IncorporateFast does not stop at ... more ...

    CorpCreationsAvg Review Score: 5.00
    Click Here to go to CorpCreations
    Click Here to read CorpCreations customer reviews
    Legal Spring Comments: ... after your incorporation has been filed.

    If you have more information, or experience with this company, ... more ...

    Legalfilings.comAvg Review Score: 2.00
    Click Here to go to
    Click Here to read customer reviews
    Legal Spring Comments: ... of the other sites mentioned here, but you can't beat the price! will form your incorporation ... more ...

    If you know of a company not listed here that provides Business Formation Comparison, please let us know by sending a message to our content division.

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