Confusing words explained
“inc” vs “llc” — What’s the Difference?
Inc (corporation, Inc. or Corp.) is owned by shareholders, run by a board of directors, taxed separately as its own entity (C-corp double tax, or S-corp pass-through), and is the standard structure for raising venture capital and going public. LLC (Limited Liability Company) is owned by members, can be run by members or managers, taxed by default as pass-through (no double tax), much simpler and cheaper to maintain, but harder to raise outside investment.
Key takeaway
Quick Difference: inc vs llc
Inc (corporation, Inc. or Corp.) is owned by shareholders, run by a board of directors, taxed separately as its own entity (C-corp double tax, or S-corp pass-through), and is the standard structure for raising venture capital and going public. LLC (Limited Liability Company) is owned by members, can be run by members or managers, taxed by default as pass-through (no double tax), much simpler and cheaper to maintain, but harder to raise outside investment.
inc vs llc Side-by-Side Comparison
Meaning of inc
Meaning of llc
How to Remember the Difference
Inc has shareholders and a board (good for big growth); LLC has members and pass-through tax (good for small business).
Frequently Asked Questions About inc vs llc
What’s the difference between “inc” and “llc”?
Inc (corporation, Inc. or Corp.) is owned by shareholders, run by a board of directors, taxed separately as its own entity (C-corp double tax, or S-corp pass-through), and is the standard structure for raising venture capital and going public. LLC (Limited Liability Company) is owned by members, can be run by members or managers, taxed by default as pass-through (no double tax), much simpler and cheaper to maintain, but harder to raise outside investment.
How can I remember inc vs llc?
Inc has shareholders and a board (good for big growth); LLC has members and pass-through tax (good for small business).