LLC
A limited liability company, flexible in management and pass-through by default for taxes.
Corporation
A corporation with a board, officers, and shareholders, taxed as its own entity unless an S election is made.
| Feature | LLC | Corporation |
|---|---|---|
| Management | Flexible, member or manager managed | Board of directors and officers |
| Default taxation | Pass-through to members | Taxed at the entity level, S election can change this |
| Ownership | Membership interests | Shares of stock |
| Formality | Lighter ongoing formalities | Bylaws, minutes, and annual meetings |
| License applications | List members and managers | List officers, directors, and major shareholders |
Best for
Pick LLC
An LLC suits owners who want flexible management, pass-through taxation, and lighter formalities while still listing clear control persons.
Best for
Pick Corporation
A corporation suits businesses that want a board structure, plan to issue stock, or have tax reasons to be taxed as a corporation or S corporation.
Structure for the license, not just the taxes
For a licensed business, the entity choice is partly a tax and governance decision and partly a licensing one. An LLC offers flexible management and pass-through taxation by default, with lighter ongoing formalities. A corporation has a fixed structure of directors, officers, and shareholders, is taxed at the entity level unless it elects S status, and carries more formality such as bylaws and annual minutes.
Regulators care about who controls the company. License applications ask you to identify control persons, and the entity type determines whether that means members and managers or officers, directors, and major shareholders. Background checks and disclosures follow those people. Picking the structure before you file keeps the application consistent with your formation documents.
Talk with your accountant or attorney about the tax side. For the licensing side, our services cover entity formation and the filings that follow. You can also reach our team.
Frequently asked
- Does the entity type change my licensing requirements?
- The license type is set by your activity, not your entity. The entity changes who you list as control persons and how disclosures and background checks are handled.
- Should I ask an accountant before choosing?
- Yes. The tax differences are significant. Confirm the tax treatment with an accountant or attorney, then align the entity with your licensing plan.