S CORPORATION VS. LLC
01.Core Concepts
LLC S Corporation No No Double taxation Yes Yes Pass-through tax losses Yes No Availability of preferred return for certain investors (1 class of stock in S corporation) Yes No Partnerships, corporations, and trusts can be entity owners Yes No Foreign investors Yes No Distribute in-kind appreciated assets to owners without gain recognition Yes No Ability to transfer interest to trust for estate planning No Yes (Generally) Low filing fees Yes (Generally) No Self-employment tax on all income for owner/employees No Yes (100) Limited number of owners Yes No Owner’s basis for deductibility of losses includes pro rata share of loans to entity by third parties No Yes The law is well settled pertaining to the entity September 15th September 15th Filing date with extensions