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LLC vs. C Corporation

Forming an LLC (Limited Liability Company) or incorporating offers many similar benefits, but there are several key differences that are important to understand and consider when choosing the right structure for your specific business activity. Let this guide to LLC vs. C Corporation help you decide if an LLC or C Corporation is the right business type for you when starting a Wyoming company.


Form an LLC online or Call us to place your order by phone: Toll-Free 1-877-239-2608

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Compare an LLC vs. a C corporation below:

Key Similarities

  • Limited Personal Liability
    Both structures limit liability to the amount members or shareholders invest in the company. Therefore personal assets, including homes, cars, savings and investments, are protected from the liabilities and risks of the business.

  • Ability to Raise Capital
    Both structures allow a company to borrow money and sell equity to raise capital.

  • Unlimited Duration
    Both structures continue indefinitely, unless they are dissolved.

Key Differences

  • Profit Distribution and Tax Flexibility
    An LLC can provide pass through tax treatment and avoid entity level taxation. This means that an LLC is not a separately taxed entity and business income or losses are reported on the individual tax returns of the owners. This is similar to an S Corporation, but different from a C Corporation, which is a separately taxed entity. For those LLC owners who wish to be taxed as a corporation, however, they may elect such tax treatment by filing a form with the IRS.

    Another advantage of an LLC over a corporation is the ability to allocate profits and losses among the members as agreed upon by the members, while corporate dividends can only be paid pro rata according to share ownership. The IRS allows for special allocations for LLCs and we recommend consulting your tax advisor to learn more.

  • Structure and Formalities
    An LLC generally requires less business formalities than a corporation. An LLC may be managed directly by members and there is no need to have a separate board of directors, annual shareholder meetings or periodic directors meetings with minutes. And for many, the convenient simplicity of forming a single-member LLC that is managed by the member is very attractive because of the limited liability protection without adding a lot of corporate bureaucracy.

  • State Filing Requirements
    A Wyoming LLC is still required to do State Filings, though they are different from those for a Corporation. Articles of Organization must be filed with the Secretary of State of Wyoming to form an LLC and the members of the LLC are required to enter into an Operating Agreement that governs how the LLC will be operated.

  • Number of Owners
    Both Corporations and LLCs can have multiple owners, but there are differences in how many. An LLC and C Corporation can have one or an unlimited number of owners, while S Corporations are limited to 100 Shareholders.

Our fees for forming an LLC start at $275. including state filing fees

This is substantially lower than what an attorney might charge for the same service. Registered Agents of Wyoming LLC and our experienced staff of business formation specialists are ready to make your LLC formation FAST, RELIABLE, AFFORDABLE. Our services are backed by a 30 Day Money Back Guarantee.


Form an LLC online or Call us to place your order by phone: Toll-Free 1-877-239-2608

Get Started!


Got questions?

Email us at agents@mywyomingllc.com or call toll free today (877) 239-2608


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