Row by row comparison between limited liability companies and sub chapter S corporations
|
S Corporation |
LLC |
|
| Number of Owners | No more than 75. All shareholders must consent to the election at the time it is made | No maximum limit. In some states at least 2 members are required. |
| Nature of the Owners | Individuals, US citizens or permanent residents. decedent’s estates, bankruptcy estates, certain trusts, charitable organizations and certain qualified plan trusts. | All S Corporation eligible owners, plus, non-residents, corporations, limited or general partnerships, most trusts, and pension plans. |
| Nature of Management | Managed by board of directors and officers | Can be managed either by the owners (Member-Managed) or by one ore more Managers (Manager-Managed). |
| Nature of Ownership | Single class of stock | Different classes and priorities of ownership are allowed. |
